Published Date: 2021-06-04 | Source: INCE|Community | Author: The Finance Ghost
If you've been following my writing over the past year on thefinanceghost.com
, you'll know how I feel about Musk and Tesla. In case you missed it, this article
makes my position clear.
The thesis is simple: it doesn't make sense to me that Tesla is valued as though everyone will drive a Tesla. We have over a century of consumer behaviour with cars to know that people specifically do not want to drive exactly what their friends and neighbours are driving.
We don't all like the same shoes. Why would we drive the same cars?
Tesla's global market share decreased from 29% in March to just 11% in April. The company has lost ground in China, Europe and the US thanks to heightened competition. As I always suspected, people who want electric vehicles will still want to park Volkswagens, Fords and German luxury cars in their garages, not just Teslas.
Ford is one of the best-performing shares in my portfolio. I invested in the middle of last year when the share price was looking incredibly sad. You'll only see smiles now, as I'm up 218%. Unlike Tesla, I don't believe that the Ford share price is pricing in a totally unrealistic view of long-term market share.
Let's move on to Twitter, the social media platform that is high on engagement and low on monetisation. As Facebook's (very) poor cousin from a valuation perspective, Twitter has fluffed around trying to figure out how to make money. Facebook knows everything about you and Twitter knows almost nothing, so it's clear which platform is preferred by advertisers.
Unfortunately, Twitter Blue (a new subscription service for users) doesn't look like the most thrilling proposition. One of the features is an "Undo Tweet" feature, which allows users to preview tweets and adjust them. Um...ok.
This isn't even an edit button, which users have wanted for ages.
There are some other features too, but nothing that really jumps out at me. Twitter has made good strides recently in appealing to creators like me. They just need to figure out how to make more money from it. I'm not sure a subscription service for such B-grade features is the answer, although time will tell.