Loup Ventures’ Gene Munster says conventional cars will soon be viewed as “horses” compared with Teslas.
The closely followed venture capitalist spoke in a CNBC interview Friday after the electric-car maker’s CEO, Elon Musk, teased that he would make an announcement about the release date for the highly anticipated Model 3 car.
Musk did not elaborate on what details he will reveal on Sunday, but Munster predicts the Model 3 is going to be “particularly cheap if you look at total cost ownership.”
“The Model 3 is important, but what’s more important is this bigger shift. Every Tesla that is shipping today is going to be fully autonomous in what Telsa is saying two years,” Munster said on “Squawk Box.”
“At the end of the day, they’re best positioned for this kind of paradigm shift that’s coming up. If you look at the total market that’s been generated by the FANG this year, it’s almost $500 billion in additional market cap,” he said. “But I think that there are opportunities that are missed.”
Munster said one opportunity outside of tech is to be negative on auto parts retailer suppliers over the next five years. “This would be like O’Reilly, Autozone, Advance,” he said. “These are suppliers to an old way of doing things.”
CNBC has reached out to O’Reilly Auto Parts, Autozone and Advance Auto Parts for comment.
Conventional cars are like 'horses' compared with Teslas, says VC Gene Munster