Tesla And Oculus, Revolutions To Watch

 Talk about oil … Still trending down on fundamentals.

  • Oil prices fell on Tuesday, reflecting growing concerns that a two-month rally may be fading, as supply looked set to keep rising and there appeared to be little immediate prospect of demand keeping pace.

Talk about smart guys – Elan Musk and Palmer Luckey. The first you know and the second you should. Both are starting revolutions.

  • The new Tesla Model 3 electric car will be unveiled on March 31st as the order books open. It promises a range greater than 200 miles on a single battery charge, performance to challenge rivals like the BMW 3 Series and Lexus IS.

Tesla’s stock looks to reverse recent declines if Musk’s $35,000 EV car is real, not virtual. More importantly, other EV car manufacturers are following suit, setting off a competition that is revolutionizing car manufacturing.  Talk about revolutionizing ...The magic of presence changes everything. You’ve never experienced immersion like this.

According to 24/7 Wall St:

"We cannot rule out how Tesla will be compared to Ford Motor Co. (F) and General Motors Co. (GM) in the years ahead. Tesla is a high-beta and high-multiple stock, and its $228.00 share price generates a market capitalization rate of $30 billion. Ford’s market cap is $52 billion and its 2015 sales were $149.5 billion. GM’s market cap is $47.7 billion and sales in 2015 were $152 billion. Many investors do not want to consider valuations today — but what about when you compare today to 2019?So far, Tesla has been hampered in its ability to generate a critical mass of cars. After all, you could drop $100,000 or so on a car, unattainable for most consumers who actually would like to drive a Tesla car. The Model 3 is the effort that can take Tesla into selling hundreds of thousands of models per year."

Palmer Luckey and Oculus Rift are transforming 3-D gaming; the whole world of visual entertainmentis next.

  • Oculus Rift is the first of several high-end headsets slated to hit the market this year; HTC’s Vive starts shipping in April and Sony’s PlayStation VR will be out in October.

Musk and Luckey are setting in motion irreversible trends, much like we see in oil these days. As market folks, we should act on “obvious opportunity”, which is not oxymoronic by the way.