Some Say Tesla Is Destined To Follow In Amazon’s Footsteps

3 weeks ago by EVANNEX 18

Tesla

Parallels between two disruptors, Amazon and Tesla (Image: Pando)

TESLA COULD DO FOR CARS WHAT AMAZON DID TO RETAIL

Billionaire investor Ron Baron, recently raised some eyebrows when he predicted Tesla stock could hit $1,000 by 2020.

Last week, Marketwatch reported that, “Ron Baron and his team of fund managers come off as button-down personalities. Not a bad trait for the people managing your money. Yet they are enthusiasts of some of the most cutting-edge companies around.” Two of those companies happen to be Amazon and Tesla.

One of Baron’s star fund managers is Alex Umansky. According to Marketwatch, Umansky “does so well” yet remains “refreshingly self-effacing… for someone in a profession full of big egos.” Umansky originally came to “the Baron Fifth Avenue Growth Fund when Baron Funds CEO Ron Baron hired him away from Morgan Stanley, where he [also] had an outstanding record.”

Umansky thinks long-term — emphasizing a patient investing approach. “In today’s market environment, everyone is trigger happy because we are bombarded with information,” says Umansky. “It becomes very difficult for investors to do nothing.” Umansky points to Amazon and Tesla as stocks that require patience and a buy-and-hold investing strategy.

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

Tesla

Alex Umansky, Vice President and Portfolio Manager of the Baron Fifth Avenue Growth Fund (Image: Baron Funds)

As the Oracle of Omaha, “Warren Buffett loves to say, doing nothing is often the best thing. Or as Umansky puts it: ‘You have to be patient because greatness takes time.’ It took years for Amazon.com founder Jeff Bezos to prove his sacrifice of near-term profits to invest for long-term gains made sense. Or for him to develop the credibility he now has among investors. So Umansky’s time horizon on stocks is five years or more.”

Can slow-and-steady investing win the race? “A great example is Tesla. Despite the doubts that crop up around this company, Umansky and Baron remain big fans. Umansky sees Tesla as nothing less than a reincarnation of Amazon.com. Tesla is in the early stages of being the game changer in cars that Amazon.com was in retail years ago.”

Tesla

Elon Musk and Jeff Bezos (Image: Expansion)

Looking at Amazon, “They spend more in cloud computing research and development than their closest competitor has in revenue” in the space, says Umansky. He also sees Tesla’s hefty R&D investments reaping rewards over the long-term. “Tesla is much more than just a pioneer in electric cars. Tesla may ultimately be the leader in ‘clean, autonomous, shared mobility,’ predicts Umanksy. ‘They could have the largest network of self-driving cars, which can easily replicate what Uber does.'”

Baron Funds most recent investor letter also emphasizes the importance of investing in strong management.

Umansky agrees: “Part of his conviction stems from meetings with Tesla CEO Elon Musk. Like Bezos, Musk has an enthusiasm for thinking big, investing for the long-term and continually experimenting with ideas to find the ones that work.”

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Model S (Instagram: nikkithetesla)

Others on Wall Street have also noted parallels between Tesla and Amazon. But, at the end of the day, Umansky admits to being “swayed by his own test driving of Tesla cars, something he encourages investors to do. ‘The product is so vastly superior,’ says Umanksy. Here, he takes a page from the book of another investor great, Peter Lynch, who as a fund manager at Fidelity urged investors to invest in companies that make products they know and like.”

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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18 responses to "Some Say Tesla Is Destined To Follow In Amazon’s Footsteps"

  1. Steve says:

    Haha, this is laughable. How did this make into a column?

    1. Pushmi-Pullyu says:

      By writing something which is positive, upbeat, and worth reading.

      You might try that sometime, yourself.

    2. SJC says:

      Typical troll, throw out the bait.

  2. Get Real says:

    Maybe the better question is why did you click on it just so you could complain?

    1. jimjfox says:

      ‘Ridicule’ is his intention, I think.

  3. Will says:

    😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 funny

    1. jimjfox says:

      Gee Will- THAT must have taken hours of deep thought & concentration. Well done!

  4. jim stack says:

    The full value of Tesla is unlike any other company. None even have an electric car AND a charging Network. They all think it’s the drivers problem to find fast affordable charging.
    Tesla makes the battery, the car, the charging Network, the Solar Panels and had autonomous driving already out and doing much more than any others.
    The model 3 is breaking range and sales records as it slowly ramps up. Quality before quantity.
    I’m long on Tesla. I thank them for helping in Puerto Rico and Australia among many world wide projects that will not stop.

  5. jimjfox says:

    Don’t think so. Amazon manufactures almost nothing- is that true? Which is pifflingly simple compared to what Musk is doing. Much like bankers really- produce nothing, just facilitate others. Successful authors [JK Rowling, anyone?] write popular drivel and make billions.
    Good for them but will it cure cancer or create new cheap green energy?

    Tesla as the Great Disruptor is real but it probably does not nor never will have the resources to compete when/if the majors get fully into EV production; we see this already with the Chinese and some big rig majors plus the airplane market that Tesla has no part of.

    Doesn’t matter except to investors if Tesla fades somewhat- Musk will have fulfilled his aims & may move on to a new field of dreams…

    1. Timmy says:

      Authors like J.K. Rowling engage (millions of) children’s imaginations and make them better readers. What’s that worth?

      1. Jim J Fox says:

        Hard to say; depends on the quality of her writing. The subject matter is ridiculous for adults so I confess I haven’t read any of it.
        My generation & later ones grew up on RL Stevenson, RM Ballantyne, Jules Verne, Dickens, the Bronte’s, Mark Twain & later on Orwell, Huxley,Hemingway, Steinbeck and other ‘classical’ writers. So I doubt many kids today get to read that standard of English.

        And the internet tends to prove that ‘beyond reasonable doubt’!

    2. Pushmi-Pullyu says:

      “Tesla as the Great Disruptor is real but it probably does not nor never will have the resources to compete when/if the majors get fully into EV production…”

      If Tesla keeps growing at the rate that it has been growing, as fast as it has grown from 2012-2017, then it’s going to be one of the “majors” in less than 10 years.

      At the moment at least, it’s hard to imagine anything is going to stop that growth.

      1. Jim J Fox says:

        It’s fine to be optimistic but do we have any grasp of what actual reality will produce? Does Elon have any desire to become a major manufacturer of vehicles? I seriously doubt that, it is too mundane for his intellect. Will Tesla continue in its present form? Probably not. A market crash will decide the issue.
        I firmly believe ‘disruption’ is his raison d’etre, not ‘production’. That is just a means to an end.

  6. John says:

    I dont think so . Toyota and vw can wipe out tesla if they want to.
    They are waiting when the price is right to start selling ev.

  7. John says:

    For every pro-Tesla pundit there’s one who thinks the company will end up fizzling out. There’s a LOT at stake with the outcome of the Model 3, and so far it looks pretty concerning and shaky. That being said, I’m rooting fiercely for Tesla, because every day they’re relevant they’re dragging the rest of the ICE community kicking and screaming into the better future.

    But I’m concerned about their Model 3 production.. because I’m not seeing the positive results yet.

  8. BryanB says:

    LOL what? Amazon was and is the major driver behind cloud computing. Tesla is a second rate car manufacturer with completely horrible financials that is struggling to sell 100k cars a year and can not do so at a profit.

  9. Get Real says:

    LMFAO, new username troll BryanB unimaginatively repeats the same tired, whiney right-wing FUD against Tesla as all the other shills, shorters, and haters.

    Meanwhile “…second rate….” Tesla has decimated MB formerly class-leading S Class market-share and is on the verge of doing the same to 3 series, C Class, A-4, etc.

    And little old Tesla has absolutely disrupted the stagnant, laggard Auto OEMS into starting development of compelling EVs so that is that troll.

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