After Goldman analyst Patrick Archambault put out a bearish note about Tesla, the stock closed the day down 14.3%.
But Cole Wilcox, CEO of Longboard Asset Management, knows exactly what Goldman's missing in their analysis. He released a presentation in May saying that the stock was going to $200 a share, and spent last weekend with Elon Musk and hundreds of Tesla owners/evangelists outside San Jose.
It was the first annual meeting of "Teslive"— think of it as a Tesla Woodstock, summer of love type of thing.
That's where Wilcox saw what he calls a "feedback loop." When asked whether or not they had sold a Tesla to a friend, every Tesla owner present raised their hand — every single one. Some had sold more than one car to their friends.
Here's a note from Wilcox:
I recently attended the Teslive event, during which I spoke at length with Elon Musk about the feedback loop of a viral marketing campaign. The attendees at the event were asked if they had sold at least one Tesla automobile to someone in their immediate social circle – relatives, business associates, family members, etc. Virtually everyone had.They were then asked if they had sold two or more Tesla cars to friends and relatives. A majority of the attendees indicated they had.
This brief survey simply served to demonstrate the power of a viral marketing feedback loop and how, on a global scale, Tesla’s share of mind of the luxury car-buying public is continuously increasing, showing the compounding power of viral marketing.
Wall Street fails to understand the compounding power of a viral feedback loop. Hence, traditional financial firms underestimate the global demand for Tesla automobiles and related products. Most Wall Street firms are linear thinkers, and they do not understand the non-linear mathematics of viral feedback loops. Consequently, their linear models miscalculate the power and impact of viral marketing.
So get with the loop.
Below, check out a picture of Wilcox asking Elon Musk questions at Teslive.
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