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I think the reason why a Tesla is comparable to consumers in price/value to a BMW series 1 model are down the Tesla price being brought down through a combinati
by kokey 9y ago
I think the reason why a Tesla is comparable to consumers in price/value to a BMW series 1 model are down the Tesla price being brought down through a combination of subsidies and a clever financing structure which isn't really profitable and sustainable long term. It's a deliberate strategy by Tesla to enter the market and reach critical mass to start benefiting from more economies of scale. It will probably only start to turn into a profitable strategy around 2020. BMW is not pursuing such a strategy to try capture market, as they sell about 2 million cars per year and at a profit. Tesla only made 300k cars, ever, at a loss. At some point BMW will grow their portion of electric cars as it becomes viable to do so profitably and hopefully that will be around the time that Tesla is also doing it profitably.