Eric Markowitz, Director of research at Worm Capital, discusses the bull thesis for Tesla. Key topics include all of Tesla's growth options, the biggest misperceptions of Tesla, and why comparing Tesla's valuation to legacy auto manufacturers doesn't make sense.
We wrap up with 15 minutes of discussion on Spotify and what's misunderstood with that company as well.
Reading links:
Worm's Q3 letter: https://www.wormcapital.com/the-wormhole-source/q3-2021
My background tweet on Tesla: https://twitter.com/AndrewRangeley/status/1458061963439878145?s=20
Chapters
0:00 Intro
1:15 Tesla overview
4:15 Tesla's big misperceptions
5:35 How is Tesla different than other car companies?
8:45 Tesla's neural nets and R&D efficiency
13:30 Tesla's recruiting edge
16:55 Worm's investing philosophy
19:05 The power of winner take most markets
23:30 Framing Tesla's valuation
26:05 How strong is Tesla's manufacturing edge?
28:30 Does competition actually expand the EV industry?
31:30 What's the most exciting growth optionality at Tesla?
35:20 Tesla's battery opportunity
36:50 Tesla's red flags and the Solar City Potemkin village
43:05 Tesla's brand strength
45:35 The myth of the Tesla killer
49:45 Flipping to Spotify
49:55 What's the biggest misperception with SPOT?
52:05 Spotify as Netflix 2.0
54:20 Spotify's advertising opportunity
56:15 What worries Eric most about Spotify?
59:40 Spotify's relationship with labels