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Long time ago I invested all my savings in Tesla stock after having contact(worked) with European and American car manufacturers. The reason? You can't imagine
by pipio21 10y ago
Long time ago I invested all my savings in Tesla stock after having contact(worked) with European and American car manufacturers.
The reason? You can't imagine how big the facilities for building car components are. There are billions and billions invested on facilities with decades to be paid off.
This is a big advantage once cars are standard, and all the same,and don't change, but becomes a huge liability if you change the technology.
If you invest on a plant a billion dollars to build engines to be amortized in 25 years and engines become obsolete by the way... you have thrown to the trash 1.000 million dollars as your expectations for the future became wrong.
Now multiply this billion for 20 or so and there you have the car industry. They don't want change because change means them losing billions.
Then there are other minor issues: electric means no mechanical reviews which is a huge business. Electric means mechanical engineers without work.
Any change has to come from newcomers and the same way Elon did: You do your sales yourself so car manufacturers-dealers(who profit any time a mechanical piece fails) do not sabotage you.
I don't see any conventional car company doing it, maybe Toyota that advanced what the future would wring before the others that are late to the party.
- dmoy 10y agoI don't mean to tell you how to live your life, but investing all of your savings is very risky - putting all your savings in one company is extremely risky. Even if everything you state about existing car companies is true, Tesla could fail for a multitude of reasons, leaving you with nothing.
- mulcahey 10y agoYeah that's why Elon split his between two.
- marvin 10y agoIf pipio is prudent, he has sold a third or so of his shares at this point, which would leave him with a guaranteed profit even if Tesla goes bankrupt tomorrow. Even after the ~35% decline in Tesla share price during the last years, the stock is at >10x the IPO price and 7x the price in 2012.
- mrep 10y ago> They don't want change because change means them losing billions. If their managers are even remotely competent, they'll know that the factories are sunk costs.
- ams6110 10y agoAn engine plant set up to build combustion engines doesn't become worthless if the demand for combustion engines goes away. Yes it will need retooling if they are going to make something else, but it's not a complete write-off.