Good People, we made the LinkedIn News Editors’ Pick on the article on Apple and Tesla (see here – https://lnkd.in/eU3CTuj ). Yes, Apple might have bought 100 companies in the last few years, but it missed a really amazing one when it passed buying Tesla at about $20 billion, despite having piles of cash in its treasury! Today, Tesla is worth more than $650 billion! In a world of perception demand, sometimes, the most critical element is not really what the financial ratios show but what the perception of the future tells us.
The interesting thing is that all products that succeed at the level of perception are usually disruptive in their sector or industry. Google search cannot be considered to fall in the category of perception because many people already craved for better search because neither Microsoft nor Yahoo was offering a good one. So a product could be disruptive and yet not a percepting product. However, all percepting products are disruptive.
Building and analyzing companies based on their financials will miss leverageable factors which the future could unlock, and which no current financial model can pick. That is why even though Tesla does not sell up to 5% of cars which Toyota sells (sold about 9.5 million last year), the markets believe that Tesla is worth more – and a better company!
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