Tesla's Hidden Moat: A Software Flywheel Fueled By FSD

  • Tesla, Inc.'s strategic advantage lies in its ability to sell cars at zero profit now, leveraging future software revenue, especially from Full Self-Driving capabilities. Tesla's gross margins allow it to cut prices significantly more than competitors, positioning it uniquely in the market. FSD's exponential progress and potential for high-margin, recurring revenue could transform Tesla's business model.