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Batteries are a commodity, so I doubt Tesla would want to reduce themselves to an OEM and shrink their margins. Their energy business might eventually be bigger
by matahwoosh 7y ago
Batteries are a commodity, so I doubt Tesla would want to reduce themselves to an OEM and shrink their margins. Their energy business might eventually be bigger than their automotive one, but either way I think they will continue selling vertically integrated products.
- rjsw 7y agoCars are a commodity, the real money is in providing the finance for them.
- pests 7y agoAre batteries a commodity or are we just assuming that?
- NotSammyHagar 7y agobatteries are absolutely not a commodity at this time. every other manufacturer is held back by not enough battery capacity. Even the biggest companies are held back.
- ianai 7y agoYeah, until batteries are traded the same way actual commodities are they are not commodities. A good way to tell whether something is a commodity or not is whether there are strong brands in the space. I can’t go onto a major exchange and speculatively trade lithium battery cells.
- erikpukinskis 7y agoBatteries with 20% more watt hours for the weight than the rest of the market are certainly not a commodity.