Why companies like Volkswagen can’t beat Tesla.

hey everyone me Kevin here boy oh boy a

Bloomberg has a four years been talking

about how oh Volkswagen is gonna take

over Tesla is the most dominant EV play

now look I have my criticisms of some

things at Tesla but I think any prudent

long-term investor should you don't want

to be blindly bullish and you want to

identify potential pitfalls right and

this is what we have previously done but

this video is all about analyzing how

wonderful Tesla is in the fact that it

doesn't have the Volkswagen problem

folks Mr Dees the CEO of Volkswagen was

just completely blindsided last week on

Thursday when essentially the families

in charge of running Volkswagen and the

union leaders in charge of of running

Volkswagen got together at a battery

plant opening uh

and basically acted like all was good

with the CEO to his face but then after

that had their own meeting amongst their

families and decided the Volkswagen CEO

is getting the boot and instead they're

going to install the CEO of Porsche as

the CEO of both companies especially

since they ultimately want to IPO

Porsche as a separate company to help

them raise capital in an IPO that's

where you do you raise capital and

further their EV developments but what

was the big problem well it turns out

the big problem had to do with

disagreements over how their software

their internal software company was

going to actually operate and coordinate

between the various different vehicle

makes that they had for example there

were requests that Porsche was making

that were different from what Volkswagen

was making and this reminds me of the

fragmentation days of Microsoft and it's

one of the reasons I've never invested

in Microsoft don't get me wrong I think

Microsoft has a lot of benefit to it

it's obviously performed extremely well

so I I don't want to be someone to say

that's it you know I'm here to poop on

Microsoft

but Microsoft has always had a

fragmentation issue where you'll have

the Xbox division doing one thing and

they won't coordinate with the windows

people and though the windows people

don't want to coordinate uh like the

specific Windows teams don't coordinate

very well with the Microsoft Office

teams and whatever okay I didn't work at

Microsoft but I've read many books and

stories about how Microsoft has

regularly had this fragmentation issue

and the fragmentation issue is just

basically a way of saying hey like we're

so big we have so many different

departments we have like departments for

different departments that it basically

makes it very difficult for us to have

one unified strategy for how to move the

company forward it to me sounds like

that is exactly the problem that's

happening at Volkswagen Volkswagen is

not a software company they're a Legacy

auto manufacturer they produce like over

90 different Vehicles it's absolute

Insanity uh no I mean people want

different toys for vehicles I get that

but what this is a signal of for Tesla

is that Tesla is once again unique

unique by being a ground up from the

ground up startup company that is

focused on technology software autonomy

and electric vehicles they are a company

that can continue to innovate where

everybody else can't even get on the

same page with what to do that is a big

key right there that's a big takeaway

Tesla does not have the fragmentation

problems of Legacy auto it doesn't have

the fragmentation problems of even a

company like Microsoft which is still a

great company

but it goes to show the real potential

of Tesla is still ahead not behind just

producing Vehicles is not the real

potential of Tesla it's the software and

how quickly we can update and adapt

autonomy like apps the website the sales

processes honestly I hate to say it but

it's kind of like

I kind of like having a little bit more

of uh of like a dictatorship as opposed

to an old school oligarchy okay elon's

kind of like a dictator whereas you got

the old school oligarchy at the Legacy

companies at Lakeville this is not how

we do things our departments we said we

want this and this department wants this

and this department funds this and I can

be angry German because uh well I was

born in Germany so I can knock that but

anyway

Tesla doesn't have that problem and it's

an advantage for shareholders Apple is

very

very Alert in that sense

and they have such strong leadership

that they can unify the company in One

Direction even though they have a ton of

different teams and departments

Microsoft hasn't done it as well as

Apple has but Tesla stands unique here

and I think that's why Tesla's one of my

favorite Investments going forward

especially at the prices where we are

now even the 800 range to me I don't

even think about selling Tesla until

we're

1500 to 3 000 maybe 1500 uh you know you

stop adding kind of thing and we get to

like three thousand four thousand

something like that obviously we know we

got to split a comment we have a split

coming up so we'll have to adjust that

for those uh for those numbers but but

beyond that it's not even a

consideration for me to to trim that

position I'm still building it I'm about

3 500 shares away from where I want to

be at 30 000 shares folks thanks so much

for watching July 28th the coupon

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wealth get all my perspective you're the

first to hear about everything that's on

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my best while I'm traveling and uh we'll

see you soon folks thanks being part of

the community we love you bye