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I think Tesla would make way more sense if they got out of the car part of the business. Serving the consumer market directly is very expensive. Their electron
by bob1029 9mo ago
I think Tesla would make way more sense if they got out of the car part of the business. Serving the consumer market directly is very expensive.
Their electronics, batteries, motors, etc., are world class. Packaging this up into something a partner can use to build actual cars could have less risk. An electric motor or battery can propel many kinds of automobile. They tend to keep their value better when stored in this format too. The moment everything is integrated into a car, things get very bad very quickly unless you're selling Ferraris or Lamborghinis.
- notahacker 9mo agoThat would be lower margin and narrower moat even if they had the partners lined up and didn't have a valuation based on the assumption one day the car everyone would use would be a Tesla.
- flakeoil 9mo ago> Their electronics, batteries, motors, etc., are world class. This was maybe true 5-10 years ago, but not today.
- WorldMaker 9mo agoYou can compare the market cap of say GM (automaker) to Bosch (massive automaker supply chain and logistics company) to get a sense of why that sort of pivot would probably not be appreciated by the market. Supply chain companies are usually considered "lesser" companies.
- 2OEH8eoCRo0 9mo agoThey don't make their own battery cells they are an integrator of third party cells.