Tesla, Nikola, Lazarus, Putin and the end of Neo-Liberal Economics: The Week’s Most Interesting

I will spare you my introduction monologue, because I think the articles would do justice by themselves. This week I take you through 2 very interesting comparisons in Business, valuation and politics. The comparisons are not competitions, they are comparisons of ideology and thought processes.  A vs B is not always about which is better, but sometimes, reading about A can make you understand B better. So, let’s make the coffee and get started?


What do you know about Nikola? Not the man, it’s a company. It makes electric vehicles! And it is valued at $23 BillionSomeone asked me to explain Why Tesla is more valuable than GM? It begs a question of what are you valued for? Is it for the cars you sell or is it because Tesla cars run 5 million miles a day. And yes, are you valued for the fact  that you know how many miles your cars are being driven? It is a rather simple explanation and more importantly a sound investment. In the first comparison MIT also looks at how everything we knew about the current Tech age (2000-present) was wrong. It is an article that challenges everything you thought was true about tech, disruption, gig workers etc. The second article raises an even more important question. Why is a 5 year old company with zero sales valued at twenty some billion dollars? 
1. https://www.technologyreview.com/2017/06/27/150794/why-tesla-is-worth-more-than-gm/

2. https://marker.medium.com/why-upstart-nikola-is-trolling-tesla-134593c8ee3e


Long forms have a distinct ability to confuse. There’s a tendency to fill a pattern and on the later questions it’s just randomness where you want to complete simply because of the sunk cost of answering the earlier questions properly. But what if you had 200 questions, and you could answer yes to all or no to all. Simple right? Also what if question 19 was do you want inflation proof pension and question 96 was should limits on presidential terms be removed? Becomes a little complicated. But that’s how Russia conducted a referendum this week
Lazarus according to the Bible that was resurrected by Jesus. The being “brought back from death” has become a popular theme in both business and politics. Lazarus is also my favorite politician of the week after he became a DEMOCRATICALLY elected head of a nation ruled by an autocrat. That doesn’t happen very often. After a couple of weeks I introduce you again to another country with another positive start that you wouldn’t know much about
1. https://www.economist.com/europe/2020/07/04/a-phoney-referendum-shows-putins-legitimacy-is-fading

2. https://www.economist.com/middle-east-and-africa/2020/07/04/malawis-re-run-election-is-a-victory-for-democracy


In 1789, post the French Revolution, once the parliament started, all those in favour of the revolution sat on the left side of the house and all those against the revolution sat on the right side of the house. Little did they know that their seating arrangements would define politics, economics and society for over 200 years and more.  The left and right side of politics had been defined.

In 1947, a small think tank of economic radicals, made a society in Mount Pelerin and espoused ideas that the state and taxes and government spending isn’t what should drive economies and the free market system where the market and capitalism drives success is the way of the future. While they were ridiculed for 30-40 years, their theories became the absolute mainstream and were followed religiously across the world being the most successful economic and political system in the world. For as long as I have studied economics, I have been an ardent believer of the system and its success. But the philosophy or theory doesn’t hold anymore and sadly we don’t have alternatives. But it takes a generation to make a change and we need to really start reading or listening to radical ideas. They would be the norm in 20 to 30 years. One long article worth a couple of economics books. Do read it.

As usual have fun reading ! Let me know your views in the comments!

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