Morgan Stanley: Tesla is ready to 'dominate' the auto industry

The hypefest reaches epic proportions.

Tesla hasn't even _announced_ that they are entering this market, and they are now expected to dominate it! In 18 months, Tesla _might announce_ plans to enter Uber / Car Sharing (with potentially self driving technology). Then years after that, Tesla's biggest source of business will in fact be this market (that doesn't exist yet btw)

At which point, they will instantly dominate all of the competition. Because imagination and creativity is all you need

The optimism in that article is astounding, and that's coming from a dyed-in-the-wool optimist. I think this is a classic case of a layman underestimating just how hard the technical problem of building a 100% autonomous car is. Tesla has some autonomous features, but the car still requires a human driver. Getting that last 5% of the problem solved for all the little, rare, unpredictable things that can happen in the real world is a really hard problem.

I agree that shared self-driving cars are the future, and at some point sooner rather than later they will likely be electric self-driving cars. But as to which company is going to dominate that space is not easy to predict, and a company like Tesla is the underdog in a ring with heavyweights like Google and Apple.

Tesla isn't going to dominate the auto industry selling luxury cars. If they can create a car for "everyone" with a decent price (~$30,000) they might be able to gain traction. Toyota and GM (forgot VW Group!) aren't going anywhere but if they are challenged they might start innovating faster.

Electric cars will be the future and I cant wait for this to happen. No oil changes, belts, no pesky transmission to break and no exhaust.

I don't know the automotive business, but it seems that this is an area where money really matters. Mercedes Benz and BMW are sure to be interested in this market and won't sit by idly while Tesla "outsmarts" them to a viable autonomous vehicle, but Apple and Google are investigating this market too and they have huge resources, financial and technical.

It really sounds like MS is trying to justify their ownership/outlook on $TSLA. How many more times do they have to write this before it becomes true?