Comment by dkobia
15 hours ago
Besides being a meme stock, Tesla is also in the enviable position of owning its entire stack - software, hardware, chips, manufacturing etc., unlike Honda that has many critical components built by other manufacturers and not tightly integrated with the software. It is therefore well placed to make much more revenue per vehicle, if only the owner of the company can get out of its way.
Owning entire stack has benefits for sure, especially if you're dominating market. But it also comes at a huge cost - you now need to pay for R&D for the whole stack yourself.
Tesla was dreaming of dominating market. But it looks like it peaked already and its sales are falling. Having to do R&D for entire stack without growth is a very very costly proposal. It often results in just not doing R&D, and falling behind.