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They may be over valued but everybody is absolutely playing catch-up and are quite a bit away from their profit margins. What’s even worse for the legacy compa
by cassac 4y ago
They may be over valued but everybody is absolutely playing catch-up and are quite a bit away from their profit margins.
What’s even worse for the legacy companies is Tesla is the Kleenex/Coke of electric cars to a lot of young minds.
- V__ 4y agoTesla makes better software right now. But the profit-margins argument seems to be a misconception [1]. Until Tesla distances itself from Musk, I also don't think the brand will stay 'cool' for that long. [1] https://seekingalpha.com/article/4573601-tesla-gross-margins-not-impressive-as-seem https://seekingalpha.com/article/4573601-tesla-gross-margins...
- cassac 4y agoI don’t think those are fully like to like comparisons though. You have to run those numbers just for electric. Nobody I know would cross shop a Tesla and a Rav 4. They can have their margins on their ICE catalog but they don’t have it on their electric yet even with the dealer network numbers added in.
- V__ 4y agoThis we can agree on, but just as an example VW will have those margins within this year and electric sales are about a third of Teslas: https://www.reuters.com/business/autos-transportation/volkswagens-ev-business-profitable-combustion-engines-sooner-than-planned-ceo-2022-05-12/ https://www.reuters.com/business/autos-transportation/volksw...