This story is about Tesla’s moats, but I don’t mean to imply that Buffett would invest in Tesla. Tesla is far from the value investments of the Berkshire Hathaway portfolio. Rather, Buffett’s comments are to demonstrate the importance of moats. Morningstar even has a guide called Why Moats Matter. Understanding the moats a business employs is clearly important to understanding the business and its future.
Tesla’s original mission was to electrify the world’s transportation system. Along the way, that expanded into a reboot of the entire automotive industry. By the time it’s all over, Tesla will have redefined not just the way cars are fueled, but the way they are designed, manufactured, marketed and sold.
On January 17, I received a text from my wife: “Did you get the invitation for the Tesla (Model) 3 in Aventura mall?” My response: “?!?!?” Tesla sent her an email for an invitation-only event to celebrate the grand re-opening of the Aventura store in Miami, guest starring Model 3. Needless to say, I was extremely excited to check it out.
Bills have been introduced in the legislatures of Wisconsin and Nebraska that would carve out an exception so Tesla could sell its electric cars direct to the public. Franchise dealer groups, predictably, are vehemently opposed to such foolishness.
A Tesla Semi has been caught on video cruising the streets of Sunnyvale, California and the Tesla Model 3 will be on display in selected east coast showrooms beginning January 19.
A 5-0 ruling by Utah’s Supreme Court has denied Tesla the requested right to sell its vehicles directly to consumers, according to recent reports.
Tesla is reportedly in the process of securing real estate in Moscow and St. Petersburg for use as new showrooms and service centers, according to recent reports. Presumably, the company is working to establish a presence in the market before the release of the Model 3. Likely sites for Tesla locations are reportedly the “Atrium” and “Vremena Goda” in Moscow.
Following the recent decision by the Virginia Department of Motor Vehicles commissioner to reverse a ruling made in September denying Tesla a local dealership license, the company has revealed that it will immediately begin work on a new store and service center to be located at 9850 West Broad Street.
Accompanying the launch of the its Powerwall 2.0 offering, Tesla will reportedly begin completely overhauling many retail locations to focus more on the energy storage side of its business.
In addition to the information on production, revenue, deliveries, Tesla gigafactories, and profitability, the newly released Tesla Q3 2016 shareholder letter also provides some interesting information on Model 3 production plan status, Model X reliability improvements, the ongoing Supercharger station buildout, and the opening of new stores and service centers.
