Tesla Model 3 Will Bring BMW 3 Series Sales 'to Zero,' Investor Says

[Doctor///M]

Investors and analysts... truth or blasphemy?

Either way, it's a bold claim that no one truly knows what the future holds.

From thedrive.com:

http://www.thedrive.com/sheetmetal/1...ro-expert-says

Tesla is, without much opposition, the auto industry's biggest disruptor. Elon Musk and his crew consistently find ways to poke at the rest of the car biz, and with the Model 3's reign imminent, some believe that it's now in for the long-haul. While the hype behind the heavy-volume EV has already made a difference in the way other automakers think, Social Capital founder Chamath Palihapitiya feels that Tesla and the Model 3 will soon dominate the market.

And not just the EV category, the midsize car segment as a whole. According to the exec, consumers are completely missing the significance of silicon-valley darling.

"People are fundamentally misunderstanding the demand of the Model 3," he said in an interview with CNBC's Fast Money Halftime Report.

He went onto add that the BMW 3-Series, a direct competitor to the Model 3, will soon become defunct. Palihapitiya mentioned that the customer-centric ideology behind the Tesla and the system behind it will become the major victor, claiming "that entire business is going to go to zero."

"There is not a single person of right, sound mind and body, if you could build a Tesla Model 3 online and get it delivered in 30, 60, 90 days, or you have the choice of buying the BMW 3-Series will choose the BMW," said the businessman.

Morgan Stanley's Adam Jones negated Palihapitiya's comments, bringing international sales into context. Still, the Social Capital boss stood strong and reiterated that Model 3 pre-orders are already consuming that of the Bimmer's, not to mention Tesla's own Model S.

[RABAUKE]

Given that EV sales are crap even with huge government rebates I suspect it's going to be a while before the EV replaces much of anything.

[Eternal]

Dumb article with zero basis.

[ShocknAwe]

Potato.

[The Automotive Enthusiast]

This will probably NEVER EVER happen. I lol'd.

Social Capital founder Chamath Palihapitiya said Thursday "people are fundamentally misunderstanding the demand of the [Tesla] Model 3."
In an hour-long appearance on CNBC's "Fast Money Halftime Report," Palihapitiya said the new auto model will outpace the comparable BMW 3 Series, saying "that entire business is going to go to zero."
Morgan Stanley's Adam Jones pushed back on Palihapitiya's claim, noting international and political contexts to the businesses.

But Palihapitiya said pre-orders of the Model 3 are already hitting 3 Series orders, pointing to a market shift.
"There is not a single person of right, sound mind and body, if you could build a Tesla Model 3 online and get it delivered in 30, 60, 90 days, or you have the choice of buying the BMW 3 Series will choose the BMW," he said.
Palihapitiya is the founder and CEO of investment firm Social Capital. He was formerly a member of the senior executive team at Facebook and recently spoke at the Delivering Alpha conference.

https://www.cnbc.com/2017/09/14/tesl...ihapitiya.html

[c1pher]

Tesla is notorious for not meeting schedules or deadlines and the car costs way more than base price if you want more than a steering wheel and a box to sit on to drive it.

[overcoil]

Anything is possible. If the Tesla model 3 can offer acceleration and navigation screen plus self driving at 80% of what the Model-S offers. Tesla is probably only hampered by production for their 3.
I'd take an E class or 5- series over a model S solely on price. Bring the price to below $70k and the Tesla makes a lot of sense.

[Twt]

Isn't this the guy that told us Beta was the future for the VCR

[b4hand]

I think if Tesla can make more cars then yeah, but until then, its just speculation.

[Law]

Meanwhile, TSLA stock has been in a downhill spiral this week and dropped by -15.39 (-4.20%) today.

This "expert investor" is probably financially invested in Tesla and is disseminating bullshit to cover up the bad news.

[vladberca]

Nonsense article.
Beside US, Tesla's sales are modest.

[overcoil]

Originally Posted by Law

Meanwhile, TSLA stock has been in a downhill spiral this week and dropped by -15.39 (-4.20%) today.

This "expert investor" is probably financially invested in Tesla and is disseminating bullshit to cover up the bad news.

So is Apple stock down and they're a dominant player

[mkoesel]

Range anxiety is still a thing. And so is the lack of sufficient charging infrastructure.

Gradually, those issues will be dealt with. But in the meantime, EV sales growth will be limited by them. And by the time they’ve been addressed to the satisfaction of the collective car buying public, Tesla will have competition in the form of EVs from every corner of the auto industry including from BMW’s own 3 Series Electric model and also their i5 model.

This is not going to be the beat down that those who stand to benefit from a profitable Tesla, nevermind a dominant Tesla, would lead you to believe.

[Law]

Originally Posted by ScottSinger

So is Apple stock down and they're a dominant player

Irrelevant.
Nobody is claiming Apple products to be the demise of BMW's bread and butter.

[SCOTT26]

Yes but the Model 3 cancellation and refunds story is at the least very intriguing.

[SaltyNC]

Tesla Model 3 reminds me too much of a 2006 Scion tC. ;-)

Salty

[Sephiroth]

It is truly that far fetched? BMW's are quickly becoming appliances, like an electric car is, so in the medium term its possible. Why choose a BMW over a Tesla?

[yousefnjr]

Originally Posted by Law

Meanwhile, TSLA stock has been in a downhill spiral this week and dropped by -15.39 (-4.20%) today.

This "expert investor" is probably financially invested in Tesla and is disseminating bullshit to cover up the bad news.

Downward spiral? They hit an all-time high on Monday, they’ll be just fine

[Law]

Originally Posted by yousefnjr

Downward spiral? They hit an all-time high on Monday, they’ll be just fine

Pardon me, is today Monday?
Oh wait, its Friday, not a good day for Tesla.

[yousefnjr]

Originally Posted by Law

Pardon me, is today Monday?
Oh wait, its Friday, not a good day for Tesla.

It’s also 2017, and they’re up nearly 100% since the start of the year. Ignore the short term fluctuations.

[sygazelle]

This guy has had a lot of success the VC world. When investors make bold claims its best to 1) ignore them completely or 2) be aware that they have some type of business-driven agenda. It would not surprise me if he or his firm have investments in companies that are doing business with Tesla.

As part owner in the GS Warriors, it would have been just as laughable if he'd predicted that the Warriors would win the championship. Oh, wait......

[Law]

Originally Posted by yousefnjr

It’s also 2017, and they’re up nearly 100% since the start of the year. Ignore the short term fluctuations.

Cool story, but we are speaking in the context of the bogus claims, which happen to coincide with a less than auspicious week for Tesla stock.
Coincidence? I think not.