Dave Lee on Investing

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

This video was recorded on the morning of Feb 27, 2020. The DOW ended up closing the day at 25,774.64, down 1190 points for the day.

My videos typically are streams of consciousness. And especially when I give thoughts on current events, the info and views can be outdated very quickly. Any thoughts, projections, and info shared are of personal opinion at the time of publishing the video, and should not be taken as financial advice. Please do your own research and due diligence, and most importantly make your own decisions.

1. Viewing risk

I typically prefer a long-term perspective that allows me to focus on the business prospects of a company. This allows me to analyze growth, revenue, margins, profits and to give a multiple on the company.

Stock ticker is more a reflection of current sentiment toward that company’s valuation and can fluctuate greatly.

Macroeconomic concerns can also weigh on how investors think about the markets and stocks.

There’s always risk. Some risk is apparent like execution risk or competition.

However, some other risk is not visible. They can be unexpected like a pandemic or a catastrophic event.

It’s difficult for most people to hold these two things in one hand: optimism for the future and sober view of risk.

Oftentimes things that are true are not one-sided, but rather have a deeper complexity.

2. Economic impact of Coronavirus spread

I give a snapshot view on my thoughts will be outdated in a matter of days. This is only to show how I’m processing today’s events and assessing risk.

Probabilities are tough to assess because things are always changing and there’s so much unknown.

3. Levered hedge funds

This past week Warren Buffett talked about how interest rates are so low and how that is encouraging borrowing and the use of leverage in investments by various people.

Chamath Palihapitiya was also on CNBC this week talking about the use of leverage with hedge funds and how this could cause a “force” exiting of sorts if the stock market declines further.

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

Should you take more risk? Or should you diversify more?

It’s an age-old question and in this video I’d like to share some fresh thoughts on this topic.

Here’s a question from Chris Guthrie:

“Dave, I've watched nearly every single one of your videos. I've been long TSLA since late 2016 and early 2017. What I want to know is how you pay your monthly bills today? Do you have lower risk cash flowing investments that cover your cost of living and then use other wealth to invest in companies like TSLA?

What I'd like to do is further build out more passive investments to cover my monthly expenses so I can pour any amount of excess capital for larger bets either on a potential 10x investment or in one of my own business ideas. Right now my monthly expenses are covered by a few online businesses but the cash flow from these businesses isn't as guaranteed for the long term as something like a combination of assets like municipal bonds, REITs, a dividend income ETF, etc.“

Bigger question is how I personally view risk and diversification.

I think there are two different needs and goals.

First need/goal is to cover your current and future living expenses

Typical is a shrinking retirement fund concept.

Atypical is a growing retirement fund concept.

So how do you get enough assets to have a growing retirement fund?

How much assets do you need for a growing retirement fund?

My preferred approach to investing is to get to the place where my current and future living expenses are covered with safe assets.

Then, use the rest of my assets/income/etc to invest to the max potential of investing that’s possible. With these investments I’m looking for outsized gains for low-moderate risk.

The second goal is why invest if living expenses already covered? In other words, why focus on preservation beyond a certain point?

This answer is personal but I look into some deeper reasons on what benefits investing can bring in the bigger picture.

I’m a big fan of the power to start new businesses, even if it’s a small start. I’d love to cover this more in future videos.

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

Should you take more risk? Or should you diversify more?

It’s an age-old question and in this video I’d like to share some fresh thoughts on this topic.

Here’s a question from Chris Guthrie:

“Dave, I've watched nearly every single one of your videos. I've been long TSLA since late 2016 and early 2017. What I want to know is how you pay your monthly bills today? Do you have lower risk cash flowing investments that cover your cost of living and then use other wealth to invest in companies like TSLA?

What I'd like to do is further build out more passive investments to cover my monthly expenses so I can pour any amount of excess capital for larger bets either on a potential 10x investment or in one of my own business ideas. Right now my monthly expenses are covered by a few online businesses but the cash flow from these businesses isn't as guaranteed for the long term as something like a combination of assets like municipal bonds, REITs, a dividend income ETF, etc.“

Bigger question is how I personally view risk and diversification.

I think there are two different needs and goals.

First need/goal is to cover your current and future living expenses

Typical is a shrinking retirement fund concept.

Atypical is a growing retirement fund concept.

So how do you get enough assets to have a growing retirement fund?

How much assets do you need for a growing retirement fund?

My preferred approach to investing is to get to the place where my current and future living expenses are covered with safe assets.

Then, use the rest of my assets/income/etc to invest to the max potential of investing that’s possible. With these investments I’m looking for outsized gains for low-moderate risk.

The second goal is why invest if living expenses already covered? In other words, why focus on preservation beyond a certain point?

This answer is personal but I look into some deeper reasons on what benefits investing can bring in the bigger picture.

I’m a big fan of the power to start new businesses, even if it’s a small start. I’d love to cover this more in future videos.

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

Should you take more risk? Or should you diversify more?

It’s an age-old question and in this video I’d like to share some fresh thoughts on this topic.

Here’s a question from Chris Guthrie:

“Dave, I've watched nearly every single one of your videos. I've been long TSLA since late 2016 and early 2017. What I want to know is how you pay your monthly bills today? Do you have lower risk cash flowing investments that cover your cost of living and then use other wealth to invest in companies like TSLA?

What I'd like to do is further build out more passive investments to cover my monthly expenses so I can pour any amount of excess capital for larger bets either on a potential 10x investment or in one of my own business ideas. Right now my monthly expenses are covered by a few online businesses but the cash flow from these businesses isn't as guaranteed for the long term as something like a combination of assets like municipal bonds, REITs, a dividend income ETF, etc.“

Bigger question is how I personally view risk and diversification.

I think there are two different needs and goals.

First need/goal is to cover your current and future living expenses

Typical is a shrinking retirement fund concept.

Atypical is a growing retirement fund concept.

So how do you get enough assets to have a growing retirement fund?

How much assets do you need for a growing retirement fund?

My preferred approach to investing is to get to the place where my current and future living expenses are covered with safe assets.

Then, use the rest of my assets/income/etc to invest to the max potential of investing that’s possible. With these investments I’m looking for outsized gains for low-moderate risk.

The second goal is why invest if living expenses already covered? In other words, why focus on preservation beyond a certain point?

This answer is personal but I look into some deeper reasons on what benefits investing can bring in the bigger picture.

I’m a big fan of the power to start new businesses, even if it’s a small start. I’d love to cover this more in future videos.

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

More reading: https://www.cncda.org/wp-content/uploads/Cal-Covering-4Q-19.pdf

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

The stats are out. Tesla’s Model 3 has outsold both the Honda Accord and Toyota Corolla last year in California.

In this video, I’m going to take a deeper look into these stats and see what they tell us about Tesla’s growing dominance.

In terms of adopting new technology, California tends to be quicker than most other States.

They are closer to where lots of the tech innovation happens in Silicon Valley.

And there’s a general openness and optimism toward technology and what it can offer.

So looking at California can give us clues in terms of what kind of trends might define our future.

Let’s dive into the 10 most interesting findings of the report and then we’ll discuss what’s significant.

1. New vehicle registrations in California look strong

Expected to sell 1.82 million units in 2020

Slightly down the past few years, but up significantly from 10 years ago

2. Cars are losing market shares to SUVs

Last year there was a 12% drop in new car sales compared to the previous year.

While SUVs and trucks were flat.

Preference clearly shifting to larger vehicles

3. The biggest market is non-luxury SUVs

Makes up 31% of the market

compared to 19% for small cars

4. Electric cars make up 5.3% of new vehicle sales

5. Hybrid and electric make up 13.2% of the market

6. Top vehicles (cars and SUVs) in order are

Honda Civic 75915

Toyota Camry 63459

Tesla Model 3 59514

Honda Accord 58310

Toyota Rav4 55760

Toyota Corolla 54186

Ford F Series 50152

Toyota Tacoma 44623

Honda CR-V 39800

7. The only 2 vehicles that sold more units than Tesla Model 3 were

Honda Civic 75915

Toyota Camry 63459

8. Tesla Model 3 demolished every other car in its category

Tesla Model 3 59514

Mercedes C Class 13529

BMW 3 Series 11479

Lexus ES 11308

Audi A3 2641

9. Tesla Model 3 took 43.7% of the “Near Luxury” car market

Tesla Model 3 59514 43.7%

Mercedes C Class 13529 9.9%

BMW 3 Series 11479 8.4%

Lexus ES 11308 8.3%

BMW 4 Series 4.5%

10. Model Y Will Dominate “Luxury Compact SUV” segment

Mercedes GLC-Class 15987

Lexus NX 13685

BMW X3 12185

Audi Q5 12051

Acura RDX 8303

Tesla is the only EV maker that has been successful at “crossing the chasm” and going mainstream with their electric vehicles.

In the Q&A section I answer the following question:

How will coronavirus affect Tesla and the market?

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

More reading: https://www.cncda.org/wp-content/uploads/Cal-Covering-4Q-19.pdf

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

The stats are out. Tesla’s Model 3 has outsold both the Honda Accord and Toyota Corolla last year in California.

In this video, I’m going to take a deeper look into these stats and see what they tell us about Tesla’s growing dominance.

In terms of adopting new technology, California tends to be quicker than most other States.

They are closer to where lots of the tech innovation happens in Silicon Valley.

And there’s a general openness and optimism toward technology and what it can offer.

So looking at California can give us clues in terms of what kind of trends might define our future.

Let’s dive into the 10 most interesting findings of the report and then we’ll discuss what’s significant.

1. New vehicle registrations in California look strong

Expected to sell 1.82 million units in 2020

Slightly down the past few years, but up significantly from 10 years ago

2. Cars are losing market shares to SUVs

Last year there was a 12% drop in new car sales compared to the previous year.

While SUVs and trucks were flat.

Preference clearly shifting to larger vehicles

3. The biggest market is non-luxury SUVs

Makes up 31% of the market

compared to 19% for small cars

4. Electric cars make up 5.3% of new vehicle sales

5. Hybrid and electric make up 13.2% of the market

6. Top vehicles (cars and SUVs) in order are

Honda Civic 75915

Toyota Camry 63459

Tesla Model 3 59514

Honda Accord 58310

Toyota Rav4 55760

Toyota Corolla 54186

Ford F Series 50152

Toyota Tacoma 44623

Honda CR-V 39800

7. The only 2 vehicles that sold more units than Tesla Model 3 were

Honda Civic 75915

Toyota Camry 63459

8. Tesla Model 3 demolished every other car in its category

Tesla Model 3 59514

Mercedes C Class 13529

BMW 3 Series 11479

Lexus ES 11308

Audi A3 2641

9. Tesla Model 3 took 43.7% of the “Near Luxury” car market

Tesla Model 3 59514 43.7%

Mercedes C Class 13529 9.9%

BMW 3 Series 11479 8.4%

Lexus ES 11308 8.3%

BMW 4 Series 4.5%

10. Model Y Will Dominate “Luxury Compact SUV” segment

Mercedes GLC-Class 15987

Lexus NX 13685

BMW X3 12185

Audi Q5 12051

Acura RDX 8303

Tesla is the only EV maker that has been successful at “crossing the chasm” and going mainstream with their electric vehicles.

In the Q&A section I answer the following question:

How will coronavirus affect Tesla and the market?

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

In this video I look at some of the outrageous price predictions from some Tesla fans.

Is a $2700 price target in 2 years realistic?

How about a $22,000 price target by end of 2024?

Often its difficult to forecast the future because there’s so many variables to consider.

It’s easy to have a narrow view and get stuck in a theory where you forecast the future inaccurately because you missed some key variables. This is an example of what I call “loose thinking.”

As investors I think it’s critical to have objecting and deep thinking, and to analyze companies from both quantitative and qualitative points of view.

A lot of the outrageous TSLA price targets out there are based on a super-fast adoption of the Robotaxi Network.

I think true autonomous driving will be rather a slow adoption at first and it’s unlikely we will see millions of Robotaxis on the road in the next 2 years.

Rather, an autonomous taxi is a revolution in how a human interacts with a car. Rather than driving a car, the car drives the human. And this requires the human to let go of control over their body. This is extremely difficult to do psychologically and requires the autonomous driving car to be significantly more safe than a human driven car. I speculate it needs to be 10x as safe as a human-operated car for autonomous driving to really cross the chasm and go mainstream.

I answer this viewer question in the Q&A section of this video:

Dazzer1234567

Hi Dave, my question is: with Tesla stock, should we stop thinking in a tradition manner? The bears are complaining that the market cap is waaay more than the actual value of the company. But one could make the same argument for a Van Gogh painting. $200 mil is waaaay more than it's practical worth. But that's irrelevant. It's worth that much because people are willing to pay that much. Same with Bitcoin. What makes a bitcoin worth $9000? Simply, the market decides it's worth that much. So can't the same mode of thinking be applied to Tesla stock? Because it's a cult stock, based around an idea, an aspiration and based around a brilliant cult figure. People want to own a part of it. So the market decides the value, regardless of the "traditional" value. Maybe that's why the "experts" in Wall Street have been so confounded by the performance. Due to their inability to think outside the normal financial "box"........I'd be interested on you r thoughts on this. Thanks!

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

Check out my archived articles/posts on Tesla and investing: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768

In this video I look at some of the outrageous price predictions from some Tesla fans.

Is a $2700 price target in 2 years realistic?

How about a $22,000 price target by end of 2024?

Often its difficult to forecast the future because there’s so many variables to consider.

It’s easy to have a narrow view and get stuck in a theory where you forecast the future inaccurately because you missed some key variables. This is an example of what I call “loose thinking.”

As investors I think it’s critical to have objecting and deep thinking, and to analyze companies from both quantitative and qualitative points of view.

A lot of the outrageous TSLA price targets out there are based on a super-fast adoption of the Robotaxi Network.

I think true autonomous driving will be rather a slow adoption at first and it’s unlikely we will see millions of Robotaxis on the road in the next 2 years.

Rather, an autonomous taxi is a revolution in how a human interacts with a car. Rather than driving a car, the car drives the human. And this requires the human to let go of control over their body. This is extremely difficult to do psychologically and requires the autonomous driving car to be significantly more safe than a human driven car. I speculate it needs to be 10x as safe as a human-operated car for autonomous driving to really cross the chasm and go mainstream.

I answer this viewer question in the Q&A section of this video:

Dazzer1234567

Hi Dave, my question is: with Tesla stock, should we stop thinking in a tradition manner? The bears are complaining that the market cap is waaay more than the actual value of the company. But one could make the same argument for a Van Gogh painting. $200 mil is waaaay more than it's practical worth. But that's irrelevant. It's worth that much because people are willing to pay that much. Same with Bitcoin. What makes a bitcoin worth $9000? Simply, the market decides it's worth that much. So can't the same mode of thinking be applied to Tesla stock? Because it's a cult stock, based around an idea, an aspiration and based around a brilliant cult figure. People want to own a part of it. So the market decides the value, regardless of the "traditional" value. Maybe that's why the "experts" in Wall Street have been so confounded by the performance. Due to their inability to think outside the normal financial "box"........I'd be interested on you r thoughts on this. Thanks!

Please share this video with others on Reddit, Facebook groups, and forums.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

Subscribe to Dave Lee on Investing on Soundwise

Further reading on Beachhead strategy:

https://www.scribd.com/presentation/21539640/Sean-Parker-s-Web-2-0-Summit-Presentation

https://umarbahadoor.com/the-beachhead-strategy/

https://ewthoff.home.xs4all.nl/Weppage%20documents/Summary%20Crossing%20the%20Chasm.pdf

https://medium.com/mbreads/crossing-the-chasm-6fe8426eb270

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

It’s extremely difficult for a new company to enter an entrenched market. Most of the time, companies fail.

In this video I dive into a key strategy to go mainstream that every investor needs to know.

The beachhead strategy is about focusing your energy and resources on one market segment and trying to dominate that market before moving into larger markets.

The analogy comes from the invasion of Normandy where the Western Allies established a beachhead in France that became the turning point of World War II.

First, businesses need to conquer a beachhead by dominating a market segment and then they can attack adjacent markets.

Facebook adopted a beachhead strategy when they focused their efforts on establishing dominance on one college campus at a time.

Further, Facebook extended the beachhead strategy when the focused their efforts to establish dominance in one country at a time.

Amazon started their beachhead with the selling of online books, and then was able to go into adjacent markets.

Tesla started their beachhead with the Tesla Roadster. It was a small market but Tesla dominated that niche and sold 2450 Roadster vehicles.

In the car market, niches only exist usually at the top of the market, and the more downstream you go the more mainstream the market is.

So, Tesla’s strategy has been to dominate every market segment they enter.

This has been the key to their survival and success.

Other auto makers aren’t establishing a beachhead anywhere.

Even the “eco buyer market” that many auto makers are targeting with their EVs is more of a bridge market that won’t exist once all cars go electric.

Here are some questions from viewers that I answer in this episode:

Issaac via davelee.tv:

Hello Dave, I have been watch your youtube channel religiously and greatly appreciate your wisdom. My question is I am only a quarter of the way of being an accredited investor which prevents me from buying the rumored Starlink IPO. Do you have any insight how I can secure some shares since I don't meet the criteria? I would be a proud owner and not trade my shares.

96EEng

Great analysis Dave! I personally think it's too late to catch Tesla. The best way forward would be to collaborate. It would be great if one of the Auto Giants built a car around Tesla Technology whether it be Autonomous Tech or Battery Tech. I'd love to see a Toyota or Honda with a "Tesla inside" badge. Apple would be best to focus on Wearable technology. Improving human and technological integration. Maybe they should partner with Neuralink.

Further reading on Beachhead strategy:

https://www.scribd.com/presentation/21539640/Sean-Parker-s-Web-2-0-Summit-Presentation

https://umarbahadoor.com/the-beachhead-strategy/

https://ewthoff.home.xs4all.nl/Weppage%20documents/Summary%20Crossing%20the%20Chasm.pdf

https://medium.com/mbreads/crossing-the-chasm-6fe8426eb270

Follow me on Twitter: https://twitter.com/heydave7

Follow me on Instagram: https://www.instagram.com/heydave7

Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY

Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo

It’s extremely difficult for a new company to enter an entrenched market. Most of the time, companies fail.

In this video I dive into a key strategy to go mainstream that every investor needs to know.

The beachhead strategy is about focusing your energy and resources on one market segment and trying to dominate that market before moving into larger markets.

The analogy comes from the invasion of Normandy where the Western Allies established a beachhead in France that became the turning point of World War II.

First, businesses need to conquer a beachhead by dominating a market segment and then they can attack adjacent markets.

Facebook adopted a beachhead strategy when they focused their efforts on establishing dominance on one college campus at a time.

Further, Facebook extended the beachhead strategy when the focused their efforts to establish dominance in one country at a time.

Amazon started their beachhead with the selling of online books, and then was able to go into adjacent markets.

Tesla started their beachhead with the Tesla Roadster. It was a small market but Tesla dominated that niche and sold 2450 Roadster vehicles.

In the car market, niches only exist usually at the top of the market, and the more downstream you go the more mainstream the market is.

So, Tesla’s strategy has been to dominate every market segment they enter.

This has been the key to their survival and success.

Other auto makers aren’t establishing a beachhead anywhere.

Even the “eco buyer market” that many auto makers are targeting with their EVs is more of a bridge market that won’t exist once all cars go electric.

Here are some questions from viewers that I answer in this episode:

Issaac via davelee.tv:

Hello Dave, I have been watch your youtube channel religiously and greatly appreciate your wisdom. My question is I am only a quarter of the way of being an accredited investor which prevents me from buying the rumored Starlink IPO. Do you have any insight how I can secure some shares since I don't meet the criteria? I would be a proud owner and not trade my shares.

96EEng

Great analysis Dave! I personally think it's too late to catch Tesla. The best way forward would be to collaborate. It would be great if one of the Auto Giants built a car around Tesla Technology whether it be Autonomous Tech or Battery Tech. I'd love to see a Toyota or Honda with a "Tesla inside" badge. Apple would be best to focus on Wearable technology. Improving human and technological integration. Maybe they should partner with Neuralink.