Comment by torginus

Very good point. People often ignore how important monopolies are to high stock prices. A monopoly can extract more wealth from the market than if there's strong competition.

A competitive market destroys revenue potential, essentially forcing companies to constantly reduce margins or innovate. Both of which are very good for the consumer, but these companies need to run harder to stay in the same place.

I've heard that for example, NIO is facing fiscal troubles, since their business model was that they sell somewhat nicer cars for more money, however everything they come out with tends to be quickly incorporated by the competition at a lower price point.