Nobel Prize winning economist: “Tesla will not be like Microsoft or Apple”

Tesla will never become a “profit machine” like Apple and Microsoft because it has no room to establish an undisputed monopoly in the auto industry, according to senior economist Paul Krugman. The Nobel laureate said there was no way Tesla’s vehicles would ever enjoy the “network effect” that has helped products such as Apple’s iPhone and Microsoft’s PCs establish a dominant market share. The network effect refers to when people flock to a product because they feel that others gain exclusive benefits from using it.