New Trend, Old Problem
[/fusion_text][fusion_text]The average investor loves stocks like Tesla (TSLA). It’s a really cool company. The technology behind their electric vehicles (and batteries) is amazing. It’s changing the automotive landscape. The sky is the limit for what this company can do.
Of course, there is the risk that Tesla doesn’t remain the dominant player in electric vehicles. The traditional car companies are closing the gap in battery range, and I won’t be surprised if a brand new company comes along to supplant Tesla at the top.
America Online (AOL) once dominated the internet service landscape. Yahoo once had the most popular search engine in America. Local cable companies (Comcast for instance) once ruled the television landscape. At one point Dell made a killing making computers.
What happened? Some other company came along and made a better product, a cheaper product, and/or delivered a better experience. Take Yahoo. It’s not that search engines became less popular. This pesky company called Google just built one that was faster and provided better results.
What will happen to Tesla? It’s anyone’s guess. Being the top player in a new industry doesn’t mean Tesla will stay there. So don’t get carried away investing in it[/fusion_text][separator style_type=”single” top_margin=”” bottom_margin=”” sep_color=”” icon=”” width=”” class=”” id=””][fusion_text]
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