Social Capital's Chamath Palihapitiya Discusses Tesla (TSLA) at SOHN, Compares it to Apple

May 8, 2017 2:26 PM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

(Updated - May 8, 2017 2:34-2:40 PM EDT)

Social Capital's Chamath Palihapitiya discussed Tesla (Nasdaq: TSLA) at SOHN, comparing to Apple (Nasdaq: AAPL). He pitched Tesla convertible bonds.

  • have 10% of luxury SUV business
  • Horrible for BMX 3 series fell off a cliff
  • Negative comments... TSLA to offer pickups, bought SCTY, building multiple factories, targeting sustainable energy independence
  • capital intensive endeavors
  • 'TSLA is UNMODELABLE'
  • TSLA story like AAPL when focus on product and technological framework
  • AAPL was able to create Virtuous Cycle
  • then vertically integrate from that stack
  • AAPL redefined mobility and computing markets
  • established pricing power
  • competitors were losing money to be in same business as aapl
  • TSLA is running similar playbook
  • if you have a Model X, impossible to go back to combustion car
  • consolidating share and differentiation, expanding product scope and vertically integrating...
  • selling autopilot software at nearly 100% margin
  • TSLA has no redefined market yet
  • TSLA story tracking closely to AAPL
  • Model S and Model X like iphone 1 and 2
  • model s and x setting stage for model 3
  • cost basis, operational model different from traditional car OEMs
  • Selling Cars upwards of 7X potential
  • wants to share in TSLA upside
  • pitching TSLA convertible bonds
  • guaranteed to not lose money as long as the company is worth 15B
  • gets 95% of upside if TSLA executes
  • 2022 convertibles are great way to bet on Musk
  • "Elon Musk our Generation's Thomas Edison"


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Hedge Funds, Hot Hedge Fund News, Short Sales, Trader Talk

Related Entities

Tesla