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There's no evidence that Tesla has a unit cost problem. If anything the opposite is true. Tesla has significantly higher automotive margins than all mainstream
by simondotau 4y ago
There's no evidence that Tesla has a unit cost problem. If anything the opposite is true. Tesla has significantly higher automotive margins than all mainstream competitors, despite producing 100% EVs with large expensive lithium battery packs. While their competitors mostly produce mature, highly cost optimised ICE vehicles.
The result is that Tesla has insane amounts of cash on hand and record-breaking profits, despite rapidly constructing/expanding three factories on three continents.
- socialismisok 4y agoIt's not the unit cost that's the problem. The unit cost decrease is a patch that can buy time to address eg an engineering cost problem, or a "we're going to need to buy bigger chips soon to get this to work" problem.