Eric Markowitz worms his way through the Tesla bull thesis... plus a little Spotify $SPOT $TSLA
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/q3-2021My background tweet on Tesla: https://twitter.com/AndrewRangeley/status/1458061963439878145?s=20Chapters0:00 Intro1:15 Tesla overview4:15 Tesla's big misperceptions5:35 How is Tesla different than other car companies?8:45 Tesla's neural nets and R&D efficiency13:30 Tesla's recruiting edge16:55 Worm's investing philosophy19:05 The power of winner take most markets23:30 Framing Tesla's valuation26:05 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 opportunity36:50 Tesla's red flags and the Solar City Potemkin village43:05 Tesla's brand strength45:35 The myth of the Tesla killer49:45 Flipping to Spotify49:55 What's the biggest misperception with SPOT?52:05 Spotify as Netflix 2.054:20 Spotify's advertising opportunity56:15 What worries Eric most about Spotify?59:40 Spotify's relationship with labels