Shulou(Shulou.com)11/24 Report--

January 17, 2008 Nobel laureate in economics, well-known economist Paul Krugman (Paul Krugman), electric car manufacturer Tesla will never become a "profit machine" like Apple or Microsoft.

Krugman believes that Tesla, led by Elon Musk (Elon Musk), is unlikely to establish an unchallenged market position in the auto industry.

When there are more people using a product, users will benefit more, and they will rush to buy it. This is the network effect. This network effect has helped Apple and iPhone and Microsoft's personal computer devices gain market dominance, but Krugman said Tesla electric cars are unlikely to benefit from the network effect.

"Tesla is obviously not the kind of company that can be expected to establish an unchallenged monopoly by taking the first step," he said in an interview on Friday. "

"even if everything goes the way it should, Tesla won't be Microsoft or Apple," Krugman added. "this is not a network externality that people use because everyone else is using something. in that case, it is difficult for people to break through it, so they can make extremely high profits that last for decades."

Tesla's share price has plummeted 65 per cent in the past year. Rising interest rates have put pressure on all technology stocks, but some Tesla shareholders say the antics of CEO Musk's acquisition of management Twitter have also exacerbated the sell-off in the company's shares.

Last year, Musk completed his acquisition of social media company Twitter for $44 billion, and then laid off more than half of his employees.

Bill Miller, a well-known investor, warned of Tesla's shrinking market share. Miller revealed that he was shorting Tesla last week because he thought Tesla was starting to lose to other major carmakers that were gradually switching to the electric car business.

According to Krugman, Steve Jobs, Apple's co-founder and former chief executive, is also known for his high degree of self-discipline and complete focus on Apple products. Musk's behavior shows that he is completely different from Jobs.

"Jobs was visionary," Krugman said. and let me say that, at least to some extent, people think of Jobs as a very cool man, wearing a black turtleneck sweater and jeans and holding the magic device that people want to buy, which helps to establish his position. "

"I don't think Tesla would be a sustained profit machine like Apple, even if Musk was as disciplined as Jobs," Krugman added. "it's not his fault, just because cars are not that kind of industry."

But Krugman also said, "but, you know, I don't know anyone else who can do so much damage to his image in such a short time."

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.