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Oh, price today is entirely margin related and poisoning the well by the ICE career attached people at major car makers. Everyone wants Tesla margins so is char
by fnordpiglet 3y ago
Oh, price today is entirely margin related and poisoning the well by the ICE career attached people at major car makers. Everyone wants Tesla margins so is charging Tesla prices, and the ICE career aligned execs are intentionally pushing the ICE will be affordable narrative.
BYD, MG, and other Chinese EV makers are already eating ICE makers alive in Asia and creeping into Europe. Nothing about EV is necessarily expensive - they’re very simple devices, no part is exotic, and most of the current price is baked into fit and finish plus heavy margins.
ICE cars are genuinely amazing machines of precision mastery. They’re complex and difficult to make. The only reason they’re cheap is scale and long established supply chains. But if you reduced their complexity by 80-90% like with an EV, the scale and maturity of supply chain required to overtake ICE is not 25 years to establish. It’s more like 3-4.
- d1sxeyes 3y agoAre Tesla’s margins really that great? I know their stock keeps going up but in terms of revenue vs costs, I didn’t think they were that much better than any other luxury car brand-although I accept on reflection that I can’t identify why I think that, which probably means it’s not based on anything. Regardless of supply chain maturity and so on, I think you are wrong that the average family is less than 4 years away from a new car though.