The shift to fleet purchases of automobiles will undermine Tesla's current competitive advantage of its direct (rather than through dealer) distribution. Tesla's marketing and distnbution advantage will protect it from new entrants in the electric vehicle market. On a per automobile sold basis, Tesla is a cheaper stock than Toyota With higher automobile utilization and longer lives, U.S. sales of new automobiles will increase slowly. 5 S? Tesla has had a virtual monopoly at the high end of the electric vehicle market, enjoying premium pricing and low marketing expenses. The electric car does not represent a disruption while transportation as a Service (TaaS) is a disruption. The majority of today's automobile assembly capacity will be excessed potentially resulting in marginal pricing. The 10-times increase in vehicle utilization will result in the number of registered automobiles decreasing from 250 to 50 million. Tesla will benefit from TaaS as it will expand the automobile market