The Tesla story is amazing. What a visionary Musk is. What I liked in the Citron report is that car sales in the USA are falling, but Tesla sales are increasing. Tesla is destroying the competition. The model 3 is completely dominating its class amongst mid-size luxury and the Model S is by far the largest seller in the large luxury car market. Tesla is taking away sales from Mercedes, Audi and BMW. It is also taking sales away from Toyota and Honda, which means people are spending more money to be a part of the “Tesla Revolution". And this is just the car sales, let alone the energy storage market.
I reckon the same thing will happen here. This morning I had to fill up my car at 169.9 cents/litre. And earlier this week I had to have the clutch replaced in my wife's car at a cost of $1300. The operating costs of running an ICE car are quite considerable. I asked the mechanic who fixed my wife's car what he is going to do when everyone starts driving an electric car, and his answer really surprised me. He said he fully expects the take-up fo electric cars will put him out of business and believes this will happen quite quickly. He has planned ahead for this contingency.
All of this makes me more and more comfortable with my GXY investment.
GXY Price at posting:
$2.26 Sentiment: Hold Disclosure: Held
