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Other car makers also make a lot more than just cars. More so than Tesla, probably. Most of them include banks, for example. They usually started out financing
by IfOnlyYouKnew 6y ago
Other car makers also make a lot more than just cars. More so than Tesla, probably.
Most of them include banks, for example. They usually started out financing their customers' car purchases but in many instances have expanded beyond that.
Peugeot makes pretty nice bicycles :)
- fastball 6y agoBut with a bank you don't look at market cap, so still a bad comparison.
- Retric 6y agoHonda jet ski’s for example are profitable, but don’t have significant growth potential which minimizes the impact on Market Cap. Tesla’s charging network by comparison has constant EV sales pushing up demand. Tesla building parts that most companies outsource isn’t that profitable on it’s own, but it’s likely to scale with increasing EV sales and future repairs. Etc etc. If you want to do in depth analysis it takes a lot more time than simple direct comparisons suggest.
- ericd 6y agoWhere's the "moat" is in electric charging networks, though? I view it just as a way to make their EVs usable/saleable until the world catches up, not as a long term leg of the business. It seems really unlikely that the industry won't standardize on something interoperable/non-proprietary.
- Retric 6y agoI don’t think there is a moat, but simply riding the wave of an expanding market that’s going to get vastly larger is a great place to be. It’s not guaranteed to be particularly profitable, but worst case they can still just sell it off.
- ericd 6y agoYeah fair. I wonder how difficult it is to get the power infrastructure in place to build a supercharger at the average rest stop.