Tesla, the full-stack disruptor, which doesn’t spend on paid advertising and has more in common with Apple than BMW or Ford, has again exceeded Wall Street expectations and defied the pandemic crisis with a profitable 2020 first quarter.
Whilst the legacy car makers circle the proverbial drain, CEO Elon Musk remains a leading candidate to become the world’s first trillionaire.
A highlight of the earnings call was the emphasis Musk and his CFO Zach Kirkhorn placed on the value their digital sales, marketing and service operation is delivering.
Musk asserted that a Tesla can be bought “in less than five minutes on your phone” and it can then be delivered seamlessly via a “touchless” process
Musk stressed the importance of maximizing customer happiness (“the thing that all companies should try to do”) because it results in long-term value creation and therefore loyalty (“customers will behave in the same way to us”).
Tesla the innovation machine
If you are not following Tesla, which can credibly claim to be the world’s leading innovation machine, you are missing out.