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Furthermore, spending 2x of its profit on liability payouts would lower is present and projected profit, resulting in a much lower market cap.
by coin 3y ago
Furthermore, spending 2x of its profit on liability payouts would lower is present and projected profit, resulting in a much lower market cap.
- frognumber 3y agoNo one is proposing Tesla be liable for every accident on the road.... At the time they have 100% market penetration, their market cap will be much higher. Nevertheless, it's not clear the impact on Tesla's market cap. If a self-driving car costs $1000 more, and saves me $1000 on insurance, on the net, it's a wash for the buyer. Tesla can quite literally pass on the costs to the buyer in the purchase price, who can get it back in insurance premiums. Personally, it'd be an upside to me. My costs would be the same, but my stress, risk, liability, etc. would go down. I don't want to kill someone, and if I do cause an accident, I don't want the headache. If other people are like me, sales (and market cap) might go up.