EV makers have an uphill battle winning over a sizeable percentage of the market that doesn’t want an EV and will only have one when eventually forced.
You may be right but although that margins will almost certainly need to be lower, the market segment is huge. The risks may be significant but I think they would probably be reasonable ones to take.
The market size is huge but as you say margins are very low and with a reasonable risk they might end up negative in a price war. That or you end up with factories and lines making cars you cannot shift because it’s not cheap enough. That segment is mostly about price above all else.
This is hardly a surprise. I always thought it was a Musk statement rather than a well thought-out product but it's still early days so who know what will happen? There certainly seem to be a very vocal bunch who think it's the best thing since sliced bread...
I think a lot like the design. The segment is big but the F-150 starts at $36k and the Cybertruck is $60k. The F-150 might not be as flash but it’ll go further, especially when towing.This is hardly a surprise. I always thought it was a Musk statement rather than a well thought-out product but it's still early days so who know what will happen? There certainly seem to be a very vocal bunch who think it's the best thing since sliced bread...
Yes they are in a good position but they were suggesting building out a few more factories to ship massive amounts of Model 2. That would be an expensive bet if the Model 2 struggled to sell.
When Amazon released Amazon Q if anyone knows about that. It could tell you about unreleased projects and internal data because they'd not been all that careful with what they trained it on. So this can easily happen.
£35k electric car is still difficult to shift in volumes in the current climate - Jeep - Avenger EV has shifted only around 200 cars in the last year. I know Tesla is not Jeep but just for comparison the Fiat e600 again shifted only around 200 cars and that costs around £22k. The comparison is the ICE cars of that size costs only around 16-17K. The current environment is not very conducive for BEVs. Tesla as a business has to look at those numbers and the small car is exclusively for the European and Asian market where BEVs roughly costs around 15-16K (in Asia).
| City - Cold Weather | 190 mi |
| Highway - Cold Weather | 135 mi |
| Combined - Cold Weather | 160 mi |
| City - Mild Weather | 290 mi |
| Highway - Mild Weather | 175 mi |
| Combined - Mild Weather | 220 mi |
Apple wouldn't go into a price war, they'd be extremely expensive. It's the Chinese that are swallowing Tesla's margins.
They did when their profits were taken away by Samsung. Apple will do anything to increase their profit margin.
Which is exactly why EV's aren't selling as it's too big a price jump for a lot of people from the ICE versions. Add in if they don't have a driveway or home charging, it'll also probably be more expensive to run the EV than using petrol at current public charging costs. Zero reason for a lot of folks to go EV.
Apple used the US legal system to punish Samsung, Apple are now being sued by being monopolistic in the US.
This really.
And the same logic applies to Tesla too and maybe why they shelved their Model 2? Model 2 at £35k isn’t going to shift in volumes even with better batteries and drivetrain in this current climate.
