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Market share is irrelevant. Tesla makes more in margin per car than their next 8 competitors combined. Recall that Apple took 35% of the profit in the smart ph

Market share is irrelevant. Tesla makes more in margin per car than their next 8 competitors combined. Recall that Apple took 35% of the profit in the smart phone market with only 7% market share. Also, Tesla's target market is not EVs. Their entire mission is to lose market share, by encouraging competition to transition to sustainable energy. Tesla's target market for their vehicle business is all vehicles.

TheLoafOfBread 4y ago
Are they? Since the last earnings margin went way down
bagacrap 4y ago
Margins are crumbling and now the story is that they'll make it back by selling fsd. On top of that, all the insane valuations assume both of the things (high market share of EVs and high penetration of EVs across car market). Anyway you already knew that.
- nxm 4y ago
  And yet they still have one of the best margins in the auto industry
  - bagacrap 4y ago
    Musk seems to think it's a tech company and margins are not so amazing for that industry. If you think it should be considered an auto company the valuation is even more ludicrous.
itsoktocry 4y ago
Mercedes just reported ~14% margins and rising, Tesla reported 19% and falling. Bit of a gap, but not 3x anything. And Tesla plays a little fast and loose with how they capitalize things. Oh, and they make huge margins off a product they sell that doesn't exist (fsd).