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(1) Chevy currently plans to build 30k cars per year, a fraction of the Tesla build numbers, not even taking the Model 3 into respect. I wished they would plan
by _ph_ 10y ago
(1) Chevy currently plans to build 30k cars per year, a fraction of the Tesla build numbers, not even taking the Model 3 into respect. I wished they would plan for greater numbers as the electrical car market is large enough for both (and more!)
(2) The Tesla cars are profitable with a 20+% margin - they are growing with 100% year over year and that eats up any profits. There is actually very little government money involved.
(4) cash flow comes from 80+k cars sold this year with a $15 billion backlog on Model 3 orders.
- dmoy 10y agoI think the question on (2) may be more focused on - will consumers buy as many tesla cars if they all cost $7,500 more? Will tesla drop the price of their cars instead (thus eating into their profit margin)?
- _ph_ 10y agoThe $7,500 are US-only. Tesla cars are popular outside of the US too. Also, with the new Gigafactory, battery prices will come down. So Tesla has the ability to reduce costs, and if they decide to, reduce prices.
- spoinkaroo 10y agoThe backlog is from ~2% down 'preorders', so isn't exactly accurate. Though there is undoubtedly >15bn worth of demand for the M3, especially in light of tax incentives winding down.
- _ph_ 10y agoIt would be very rare, if the demand would be limited to the preorders. Usually the main amount of buys happens after the product becomes available on the market. So I would recon the preorders are a very conservative indicator for the volume in the first year.