Tesla business discussion
01-24-23, 12:07 PM
#541
Lexus Champion
Market trends like these most likely will not last forever. According to Reuters, analysts are warning that the global EV market’s production capacity will soon outpace demand. It’s reported that by 2026, North American EV demand will hit about 2.8 million vehicles per year. However, North American EV factories will be capable of producing over 4.5 million vehicles in the same time frame
01-24-23, 12:11 PM
#542
Lexus Fanatic
01-24-23, 12:13 PM
#543
Lexus Champion
01-24-23, 12:18 PM
#544
Lexus Champion
that prediction should be VERY alarming to all auto makers.
if they all rush to expand production, it will become a race to the bottom in prices/profits with likely bankruptcies and further industry consolidation.
and if the chinese (BYD / Nio) ever decide to 'invade' the u.s. and aren't clobbered by tariffs, then there's going to be an almighty blood bath with ford/gm getting the worst of it.
if they all rush to expand production, it will become a race to the bottom in prices/profits with likely bankruptcies and further industry consolidation.
and if the chinese (BYD / Nio) ever decide to 'invade' the u.s. and aren't clobbered by tariffs, then there's going to be an almighty blood bath with ford/gm getting the worst of it.
01-24-23, 12:34 PM
#545
Lexus Champion
I just found it odd they would throw shade in their own article.
In other news
Tesla (NASDAQ:TSLA) is planning to build a $3.5B manufacturing facility in Northern Nevada for its all-electric semi-trucks, according to the Nevada Independent.
GM says they will surpass Tesla in EV sales by 2025 you don't believe them?
In other news
Tesla reportedly planning $3.5B Nevada plant for electric semi-trucks
Tesla (NASDAQ:TSLA) is planning to build a $3.5B manufacturing facility in Northern Nevada for its all-electric semi-trucks, according to the Nevada Independent.
that prediction should be VERY alarming to all auto makers.
if they all rush to expand production, it will become a race to the bottom in prices/profits with likely bankruptcies and further industry consolidation.
and if the chinese (BYD / Nio) ever decide to 'invade' the u.s. and aren't clobbered by tariffs, then there's going to be an almighty blood bath with ford/gm getting the worst of it.
if they all rush to expand production, it will become a race to the bottom in prices/profits with likely bankruptcies and further industry consolidation.
and if the chinese (BYD / Nio) ever decide to 'invade' the u.s. and aren't clobbered by tariffs, then there's going to be an almighty blood bath with ford/gm getting the worst of it.
01-24-23, 12:42 PM
#546
Lexus Champion
I was listening to the latest episode of Tesla Daily, and he was talking about a report where a dealership was saying that the Tesla cuts are affecting their sales, but GM was just saying "ah, it will be alright". Yep, that GM. The one that pretended that the Japanese automakers in the 80's and 90's were no threat to the Titanic
01-24-23, 12:52 PM
#547
Lexus Test Driver
Totally agree ~!
Sounds very optimistic.
I have no idea what they got cooking up and ready to come out in product offerings tho.
I remember that.
Hindsight is always 20/20. haha
I have no idea what they got cooking up and ready to come out in product offerings tho.
Hindsight is always 20/20. haha
01-24-23, 12:54 PM
#548
Lexus Champion
01-24-23, 01:08 PM
#549
Lexus Test Driver
01-24-23, 01:15 PM
#550
Lexus Champion
Price cuts are not bullying, it's business. Tesla can do it because they figured out how to manufacture at scale and cut costs and increase profits. Cutting pricing is a way to put pressure on and get ahead of the competition, and even put them out of business. So if other companies can't compete, are put under intense pressure, go bankrupt etc. than that's not Tesla's problem. That's my take
Last edited by AMIRZA786; 01-24-23 at 01:19 PM.
01-24-23, 01:37 PM
#551
Price cuts are not bullying, it's business. Tesla can do it because they figured out how to manufacture at scale and cut costs and increase profits. Cutting pricing is a way to put pressure on and get ahead of the competition, and even put them out of business. So if other companies can't compete, are put under intense pressure, go bankrupt etc. than that's not Tesla's problem. That's my take
Tesla is doing the right things, transferring part of the benefits of optimized manufacturing process to the customer. If by doing that they drive some less competitive companies out of business, I'm perfectly fine with that.
BYD is another example of a highly competitive company. Toyota is buying EV technology from BYD and has publicly acknowledged they they don't know how to match BYD cost efficiency (in spite of Toyota having its own factories in China).
01-24-23, 02:16 PM
#552
Tesla production costs are going to go even lower with these new stamping machines. They are going to be cranking these things out like matchbox cars with a couple of AA batteries in them, and an iPad stuck on the dashboard. Give Musk some time, he'll have customers assembling their own cars from kits he provides.
01-24-23, 02:29 PM
#553
Lexus Champion
Tesla production costs are going to go even lower with these new stamping machines. They are going to be cranking these things out like matchbox cars with a couple of AA batteries in them, and an iPad stuck on the dashboard. Give Musk some time, he'll have customers assembling their own cars from kits he provides.
01-25-23, 11:07 AM
#555
Lexus Test Driver
Price cuts are not bullying, it's business. Tesla can do it because they figured out how to manufacture at scale and cut costs and increase profits. Cutting pricing is a way to put pressure on and get ahead of the competition, and even put them out of business. So if other companies can't compete, are put under intense pressure, go bankrupt etc. than that's not Tesla's problem. That's my take
Wholeheartedly agree. The traditional way of doing business among competitors has been to pocket savings for the benefit of the shareholders, at the expense of the consumers. Some basic products in the US have obscene profit margins because the 2-3 companies that dominate the market just want to milk the cow (would you believe that toilet paper has 40-50% profit margin because P&G, KC and GP have a tacit agreement to not rock the boat and enjoy screwing consumers).
Tesla is doing the right things, transferring part of the benefits of optimized manufacturing process to the customer. If by doing that they drive some less competitive companies out of business, I'm perfectly fine with that.
BYD is another example of a highly competitive company. Toyota is buying EV technology from BYD and has publicly acknowledged they they don't know how to match BYD cost efficiency (in spite of Toyota having its own factories in China).
Tesla is doing the right things, transferring part of the benefits of optimized manufacturing process to the customer. If by doing that they drive some less competitive companies out of business, I'm perfectly fine with that.
BYD is another example of a highly competitive company. Toyota is buying EV technology from BYD and has publicly acknowledged they they don't know how to match BYD cost efficiency (in spite of Toyota having its own factories in China).
If all the other competing Mfg's had lots of inventory at all the dealers, then I can maybe see a little "bullying" going on but I don't think that's the correct word for it anyway- poor choice of words.
This reminds me of the famouus scene in Fast and Furious when the noob hits the NOS button too early.
I would think Tesla would grab up all available profit until if and when price cutting became necessary(hit the NOS button) if it was just about squashing the competition with bullying tactcs.
Just ideas, who knows... lol
