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Tesla's price seems crazy, but it's not. In the coming few years the market for ev's is going to skyrocket, and the market for ice's is going to start to collap
by woodandsteel 6y ago
Tesla's price seems crazy, but it's not. In the coming few years the market for ev's is going to skyrocket, and the market for ice's is going to start to collapse.
There are several reasons this will happen. For one, global climate change will continue to get worse, so governments are going to keep pushing harder promoting ev's. Secondly, the number of available public charging stations is going to continue to go up. Thirdly people will become more familiar with ev's and realize a lot the ideas about them they have been fed by ice promoters are false.
Finally there is cost. Ev's are already cheaper in overall operating expense. In the next few years falling battery prices will start to make them as cheap in sticker price.
So there is a technological revolution coming. In the last year or so many of the legacy auto manufacturers have realize this, and have gone into high gear working on ev's. A flood of new models is coming onto the market.
The problem is demand is going to outrun production for many years, partly due to battery shortages, and so the companies like Tesla that have lots of ev production place are going to prosper, and those that don't are going to go out of business.
Beyond that, Tesla is also in solar and energy storage, and it is about to get into li-ion cell production. Now there is no way to be sure how things are going to go, but Tesla is clearly one of the companies to bet on.
- 0xy 6y agoToyota is a vastly superior manufacturer in every conceivable manner. Why do you think Tesla will be able to take on the rest of the industry with inferior manufacturing? Even if what you say about EVs is true, Toyota will be able to manufacture them faster, safer and cheaper. As will some other manufacturers. I also don't see how being in a commodity race-to-the-bottom industry like batteries and solar will help them.
- deleted 6y ago[deleted]
- woodandsteel 6y agoHistory shows again and again that where there is a major technological transformation in an industry, some or all of the incumbents fail to make the change, and some of the major powers afterwards are new companies. Also, Tesla is getting pretty good at manufacturing, and steadily getting better. It is turning out many more cars than it did a few years ago, and has good profit margins. It has also learned to build factories and get them into production much faster than any of the old companies can. And no, it is not a commodity race-to-the-bottom when the technology is continually improving at a rapid pace. Someday it will be, but that is decades from now. So instead of trying to figure out why Toyota will clobber Tesla, you should be trying to guess which companies today are doing a good job of positioning themselves for the big change, and which are not. Among the old companies, VW is doing a great job, Toyota is so far so-so. You know, that sort of "we are the biggest so we can't fail" mentality is the key reason companies fail to make big technology transitions.
- llampx 6y agoI wish. How many good EVs are coming from Toyota, GM, BMW etc?