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> it's difficult for new competitors to emerge Counterpoint: Tesla, Fisker, Rivian, Lucid, Faraday Future, not to mention all the new Chinese brands that I do
by piotrkaminski 3y ago
> it's difficult for new competitors to emerge
Counterpoint: Tesla, Fisker, Rivian, Lucid, Faraday Future, not to mention all the new Chinese brands that I don't follow. Difficult maybe but far from impossible, and not at all a natural monopoly.
- troupo 3y agoYour "counterpoint" is companies that took quite some time and money to establish and are well known for their anti-labor practices. From Tesla's union-busting tactics and labor protection violations to Rivian's unsafe working conditions.
- piotrkaminski 3y agoSo are you saying that car-making is a natural monopoly solely because of the unions? <half-joking>
- troupo 3y agoNo, I'm saying that it's very hard for competitors to emerge in this space, unions or no unions. Tesla took 5 years to produce its first car, and another four years to produce a second one. And it took them 17 years to break even: https://www.statista.com/chart/26705/yearly-net-income-and-revenue-of-tesla/ https://www.statista.com/chart/26705/yearly-net-income-and-r...
- autoexec 3y agoSeems like you both agree that it's difficult for new competitors to emerge. It's great that a very small number of extremely rich people managed to to gain some kind of entry into the industry, but that's not exactly compelling evidence that the barriers to entry don't disadvantage competition. Especially considering that I really only see Tesla's cars on the road and they are few and far between compared to the cars I see made by the entrenched "big three". Even with the efforts of billionaires, it's a massive uphill battle.