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Tesla is in an infinite loop of building efficiencies and lowering manufacturing costs. Elon has said many times that the lower the price of a car, the more ma
by LammyL 3y ago
Tesla is in an infinite loop of building efficiencies and lowering manufacturing costs.
Elon has said many times that the lower the price of a car, the more market share opens up.
Their margins are in the 20-25% range whereas a legacy auto maker is below 13%.
There is a lot of room to cut prices and still make money.
- SketchySeaBeast 3y agoWell that's confusing, people seem to be claiming different things. One is that they sell cars as fast as y If they continue to 100% sell out, why reduce margins?
- CamperBob2 3y ago[flagged]
- SketchySeaBeast 3y agoHmmm, message got mangled. "Well that's confusing, people seem to be claiming different things. One is that they sell out immediately, the other is that they need to reduce margins to increase the market size. If they continue to 100% sell out, why reduce margins?
- LammyL 3y agoManufacturing capacity and output are also increasing as they build more Gigafactories and optimize existing ones. The price changes are an optimization to balance sales and production output to avoid shortages or inventory.