This report is authored by Christopher Tsai, president and chief investment officer of Tsai Capital Corporation, based in New York City.

Editor’s note: As with all member research shared on this website, MOI Global does not necessarily agree or disagree with the research or the conclusions thereof.

Introduction

Tesla is a misunderstood, quality compounder with significant and underappreciated competitive advantages. We see several parallels between Tesla, Apple, and Amazon around a decade ago when Amazon had roughly the same amount of revenue as Tesla has today.

We invested in Tesla for the long-term because we think the company is well positioned for growth within the consumer technology and mobility space.

There are a number of “big ideas” that are driving Tesla’s success and helping to rapidly build intrinsic value. Here are five taken from math, physics and psychology.

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Disclaimer: This article has been provided solely for information purposes and does not constitute investment advice from Tsai Capital Corporation (“Tsai”). All facts and statistics are from sources believed reliable, but are not guaranteed as to accuracy. Any forward-looking statements contained herein represent solely the opinions of Tsai and should not be construed as any guarantee of future results. Accounts managed by Tsai can and may lose money on any investment. Any opinions provided by Tsai relating to the entities discussed herein may change without notice. Tsai and its affiliates, employees, and clients may have recently established or disposed of, or may be establishing or disposing of, positions in securities mentioned in this report. Since portfolio managers make individual investment decisions in the accounts under supervision, transactions may be inconsistent with research reports. This research report is provided solely as an informational tool through which existing clients and investors may gain additional insight into Tsai Capital’s analytical processes. Nothing in this report should be construed as representing the performance of any investment held in any account managed by Tsai Capital over any timeframe. Further, to the extent that any account holding this investment may have experienced positive performance by holding this investment during any timeframe, other investments purchased by the adviser and held during similar and/or other timeframes may have experienced materially less favorable results and/or may have lost value.

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