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Because it would make them more money per car but not overall. And they aren't competitive in that segment with the assets they have. They would have to design

Because it would make them more money per car but not overall. And they aren't competitive in that segment with the assets they have. They would have to design different models, scale down production etc, a pivot of the company. A better comparison is Mercedes or BMW, they're in a similar market segment and not selling 10x more cars at 1/5th the price live VW is. Still their market caps are lower than Tesla and their profits are in the same region (depends on which quarter you look at which one is ahead).

snovv_crash 4y ago
BMW and Mercedes aren't showing any real YoY growth. They have some token electric offerings, but don't seem particularly committed. This is HN, the difference in value between a growth company and an incumbent should be at the front of our minds at all time.
- oblio 4y ago
  You haven't been paying attention to Mercedes' EVs, especially. Quick, how many models do they have? Edit: I'll skip the suspense, they have 10 models, more than Tesla. And several more are on the way.
- clouddrover 4y ago
  > They have some token electric offerings, but don't seem particularly committed. The Mercedes EQS achieves greater range than any Tesla in real world highway range tests: https://insideevs.com/reviews/443791/ev-range-test-results/ https://insideevs.com/reviews/443791/ev-range-test-results/ So your claim is that can't Tesla can't match Mercedes' token EV offering? Why isn't Tesla showing more commitment? Tesla doesn't match the BMW iX either. Or the Lucid Air. Or the Hummer EV: https://insideevs.com/reviews/612030/hummer-ev-range-test/ https://insideevs.com/reviews/612030/hummer-ev-range-test/ It's like Tesla's not even trying.
- t0mas88 4y ago
  That growth is only interesting for two types of companies. One software companies or similar industries where marginal costs are nearly zero, so rapid growth promises huge future profits. And two, companies that could form a monopoly out of that growth to be hugely profitable. Tesla is neither of those things. So it's not a good long term investment, only a good short term one if the hype continues long enough and you can sell to someone else before profit realities kick in. The tricky thing is that you don't know when that will happen, could be 15 years from now, could be next month.

snovv_crash 4y ago

BMW and Mercedes aren't showing any real YoY growth. They have some token electric offerings, but don't seem particularly committed. This is HN, the difference in value between a growth company and an incumbent should be at the front of our minds at all time.

oblio 4y ago
You haven't been paying attention to Mercedes' EVs, especially. Quick, how many models do they have? Edit: I'll skip the suspense, they have 10 models, more than Tesla. And several more are on the way.
clouddrover 4y ago
> They have some token electric offerings, but don't seem particularly committed. The Mercedes EQS achieves greater range than any Tesla in real world highway range tests: https://insideevs.com/reviews/443791/ev-range-test-results/ https://insideevs.com/reviews/443791/ev-range-test-results/ So your claim is that can't Tesla can't match Mercedes' token EV offering? Why isn't Tesla showing more commitment? Tesla doesn't match the BMW iX either. Or the Lucid Air. Or the Hummer EV: https://insideevs.com/reviews/612030/hummer-ev-range-test/ https://insideevs.com/reviews/612030/hummer-ev-range-test/ It's like Tesla's not even trying.
t0mas88 4y ago
That growth is only interesting for two types of companies. One software companies or similar industries where marginal costs are nearly zero, so rapid growth promises huge future profits. And two, companies that could form a monopoly out of that growth to be hugely profitable. Tesla is neither of those things. So it's not a good long term investment, only a good short term one if the hype continues long enough and you can sell to someone else before profit realities kick in. The tricky thing is that you don't know when that will happen, could be 15 years from now, could be next month.