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I'm sure I don't understand your logic. They raised prices which improves their margins. They can use that money to build more factories (which they are already

I'm sure I don't understand your logic. They raised prices which improves their margins. They can use that money to build more factories (which they are already building) and pay down debt, putting them in a stronger position. The backlog gets cleared by these new factories which can try to take up the excess demand. What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand, Tesla does. https://insideevs.com/news/530606/us-ford-mache-sales-august2021/ https://insideevs.com/news/530606/us-ford-mache-sales-august...

ac29 5y ago
> What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand The company this story is about, Rivian, only started deliveries in the past few weeks and has delivered a negligible amount so far (a few hundred). They obviously intend to scale quickly, and they are hardly Tesla's only relatively new competition. It'll probably take a few years to see how the market shakes out.
Joeri 5y ago
If you look up global EV marketshare tesla doesn’t even have 20% of the market. They are the biggest EV maker yes, but they don’t even own that large of a chunk of the EV market, let alone the car market. The way I see it people are buying the competitors vehicles but those competitors are better at manufacturing as well as each having a smaller chunk of the market and therefore can meet demand. Tesla can’t meet demand in part because they are not as good at manufacturing as they need to be. If tesla was worth their valuation they would need to dominate the EV market with 80+% marketshare, because that way when the EV market grows they will dominate the overall car market. But they’re not that large of a chunk of the EV market and they can’t ramp up volume or drive down prices fast enough to be on a trajectory to own EV. When all is said and done they will be a single digit player in the total car market, mostly catering to the luxury segment, and they will not realize enough revenue to get the profits that the stock price assumes. Which is not to say the stock will fall any time soon. As long as people believe Tesla can do it, it will stay high.

ac29 5y ago

> What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand The company this story is about, Rivian, only started deliveries in the past few weeks and has delivered a negligible amount so far (a few hundred). They obviously intend to scale quickly, and they are hardly Tesla's only relatively new competition. It'll probably take a few years to see how the market shakes out.

Joeri 5y ago

If you look up global EV marketshare tesla doesn’t even have 20% of the market. They are the biggest EV maker yes, but they don’t even own that large of a chunk of the EV market, let alone the car market. The way I see it people are buying the competitors vehicles but those competitors are better at manufacturing as well as each having a smaller chunk of the market and therefore can meet demand. Tesla can’t meet demand in part because they are not as good at manufacturing as they need to be. If tesla was worth their valuation they would need to dominate the EV market with 80+% marketshare, because that way when the EV market grows they will dominate the overall car market. But they’re not that large of a chunk of the EV market and they can’t ramp up volume or drive down prices fast enough to be on a trajectory to own EV. When all is said and done they will be a single digit player in the total car market, mostly catering to the luxury segment, and they will not realize enough revenue to get the profits that the stock price assumes. Which is not to say the stock will fall any time soon. As long as people believe Tesla can do it, it will stay high.