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Tesla stock continues to drop, and has now fallen to roughly half its peak of $385. This is bad, but it is nowhere as bad as Netflix’s 80% stock decline in 2011. Netflix’s decline was followed by an eight-year stretch of growth. Will Tesla shareholders be similarly rewarded? The question is whether Netflix’s 2011 is a comparable proxy for Tesla’s 2019.

Back in 2011, Netflix had announced a jarring price increase, and CEO Reed Hastings announced it was separating its streaming business from its DVD by mail business. In a single quarter, Netflix lost 800,000 subscribers—just over 3% of its subscribers, then sitting at 24 million.

At the core of those costly decisions was the company’s belief in their category. They believed that streaming was the future and had a significant upside. And Netflix was 100% right. Now they have 60 million households in the U.S. and 150 million worldwide. The stock price is 39 times higher than its low point in 2011.

Similarly, Tesla is spot on in their belief that demand for electric vehicles will grow exponentially. In 2018, electric vehicles were 2% of total new cars sold in the U.S. but 20% of Americans want an electric vehicle (per a study by AAA). Electric vehicles already have roughly a 10% market share in California. Tesla accounts for more than 60% of the share of growth of electric cars. The idea that Tesla’s 30,000 dip in deliveries in Q1 2019 versus Q4 of 2018 highlights a fundamental demand problem with either electric vehicles (which could easily number in the millions in the near future) or Tesla itself (since their products are beloved by consumers) seems like a stretch.

Netflix also believed in their pricing power, especially if they continued to improve their product (e.g., better recommendations and more content, including original, award-winning content). Netflix was also correct about this, and has continued to raise prices successfully. Even though Netflix has surely lost some subscribers as they’ve raised prices, total revenue and profits have grown enough to offset those losses.

Tesla hasn’t increased its prices, but did see the $7,500 federal rebate for electric vehicles halved at the end of 2018—just at the same time their delivery volume dropped. Some analysts connected these two dots and see weakness in demand for Teslas. The more likely scenario is that this temporary price shock impacted quarterly sales by pulling some Q1 2019 sales earlier into Q4 2018 since the federal tax rebate phase-out was known for some time.

The reality is that Tesla’s pricing power is strong. The best evidence of Tesla’s pricing power is that Tesla is attracting mainstream car owners as well as other luxury brand owners. Per CEO Elon Musk, the five most commonly traded in cars for a Tesla are Honda Accord, Honda Civic, Toyota Prius, Nissan Leaf, and BMW 3 series. It is no coincidence that from 2016 to 2018 Toyota Prius, Toyota Camry, Honda Accord, and Honda Civic all decreased a collective 15% in the US. This decline of nearly 190,000 cars is comparable to the over 180,000 Teslas sold in the US in 2018.

Netflix and Tesla have also both struggled in some of the same ways, namely communication and execution.

Even though Netflix was ultimately right to increase prices and focus on streaming, it was clumsy in how it communicated these changes to customers. The timing of some of these moves was also off: it could have allowed DVD by mail to slowly fade, and introduced its price hike when it launched House of Cards, its first major success in original content. These were unforced errors. Similarly, Tesla has had similar, self-inflicted struggles on communication and execution.

The difference between the two firms is that since those earlier stumbles, Netflix’s execution has gotten smoother and their communication more empathetic. Netflix has continued to raise prices, using a good/better/best pricing strategy to give customers a feeling of control. Netflix has also recognized that it’s costly to try and be great at everything; this is why they’ve migrated to Amazon Web Services, even though Amazon Prime Video is a direct competitor. They’ve managed to focus on improving and expanding their content and geographies.

Meanwhile, Tesla seems to be trying to do too many things at once, perhaps one reason they are struggling on deliveries. Musk continues to juggle roles across Tesla, Space X, and the Boring Company, and to occasionally issue SEC-incensing tweets.

While Tesla is right about consumer demand and their pricing power, they should also remember that a successful company takes more than that. Being right isn’t always enough.

Eddie Yoon is the founder of EddieWouldGrow, a think tank and advisory firm on growth strategy, and the author of the book Superconsumers and a monthly newsletter. Find him on Twitter and Instagram @eddiewouldgrow.