Gene Munster Says Tesla Poised to be Next Amazon

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Recently Gene Munster, the co-founder of Loup Ventures, said that Tesla has the potential to be the next Amazon. Munster is a tech analyst, most widely known for his stunningly accurate predictions about Apple.

Though Amazon shares are nearing a record high of $1,000, Munster believes Tesla may be poised to grow in a similar way, citing similarities between the early days of Amazon and the early days of Tesla.

“People don’t understand what this [Tesla] company’s mission statement is. Much like Amazon in its early days when the company was ‘just’ selling books,” Munster said. “Most people think of [Tesla] as an electric car company, but their mission statement is to accelerate the globe’s transformation to renewable energy… You can see them grabbing market cap from energy companies which are some of the largest market-cap companies.”

Munster says that though Elon Musk’s vision for Tesla will necessitate a lot of capital to make good on, he thinks the company will succeed in their goals. Though Amazon may at the moment be the dominant tech stock, Munster says there are limitations to their growth potential, such as maintaining its market share. Munster notes that Amazon is facing stiff competition in the cloud space. Amazon Web Services is seeing a dual threat from Microsoft’s Azure, and a concerted effort by Google to capitalize on the cloud space.

In contrast, Tesla has more opportunities and fewer challenges standing in their way.

“I would, pun intended here, buckle up. This is going to be a bumpy but positive ride for Tesla in the years to come,” Munster says.