I think some of that reasoning is flawed VC, it isn't that I don't think the product isn't good, but I think it is in a honeymoon period where it is working.
Which parts of my reasoning and the business model are flawed in your opinion?
The Ford operational model is a proven model and a model which most manufacturers use, if it was more cost effective for car manufacturers to operate their own point of sale business model they would do it, wouldn't they?
As you have already stated there is very little servicing to be done, I always remember what the owner of the BMW motor cycle franchise in Perth once told me, "if you ran a business selling parts for BMW motorcycles, you would go broke".
The charging network may well make money, but as more third party providers enter the market, the Tesla market share will be eroded, well I would think that would be the case. Yet the maintenance of the infrastructure will increase with age and wear.
At the moment with the E.V space being in it's infancy, Tesla has the jump on everyone on all aspects E.V, I think a lot of the peripheral services that Tesla currently supplies, which are non core, will be offloaded as the industry matures and margins associated with the non core business become tighter.
Remember my point is simply that Tesla is not your average car company.The Ford operational model is a proven model and a model which most manufacturers use, if it was more cost effective for car manufacturers to operate their own point of sale business model they would do it, wouldn't they?
As you have already stated there is very little servicing to be done, I always remember what the owner of the BMW motor cycle franchise in Perth once told me, "if you ran a business selling parts for BMW motorcycles, you would go broke".
Electric vehicles will need minimal parts, but the overheads for carrying the people with the expertise, the servicing facilities and the associated costs affect the bottom line.
I very much doubt servicing of E.V's will be a money spinner.
The charging network may well make money, but as more third party providers enter the market, the Tesla market share will be eroded, well I would think that would be the case. Yet the maintenance of the infrastructure will increase with age and wear.
At the moment with the E.V space being in it's infancy, Tesla has the jump on everyone on all aspects E.V, I think a lot of the peripheral services that Tesla currently supplies, which are non core, will be offloaded as the industry matures and margins associated with the non core business become tighter.
Take your example of vehicle insurance, that is a very competitive industry, how will Tesla keep its margins e.g from my understanding there are only two panel shops allowed to repair Tesla's in Perth and from what I heard they have to pay a lot to have that privilege.
I'm not convinced that every panel shop will want to pay to repair their cars, ATM it may work, but ATM there is a lot of money in image and not that many Tesla's in W.A, eventually that novelty wears off and the work load increases.
As I said time will tell and ride the wave while it builds, there is always money to be made, but nothing stays the same.
Time will tell what works for them and what doesnt and as per every other business they will adapt and adjust.
I am not saying that every business unit they have will work out perfectly, I am just saying that they shouldn’t be ignored when doing the valuation like the guy in the video suggested.
I think Elon and his engineers are always looking for improvements, not just trying to get a product into dealerships asap.
I agree, but as I said those parts of the business could be sold off today for billions of dollars, leaving Tesla as a straight vehicle assembly and wholesale business. They aren’t blue sky they are very real valuable bankable assets.
I don’t know. How much would they sell for?
A lot more than the $0 some people want to ascribe to them.
It is a risk.
Society can’t allow you to be a hero for ever, eventually they will find reasons to demonise you even if you don’t give them the ammunition.This is the main threat to Tesla IMO, the pitchfork crew have been upset, so more and more negative press will be focused on Elon.
This article is supposed to be about cars, but in reality IMO it is just a rant against Musk, it wasn't long ago the media was his greatest support group.
I wonder if the media sentiment, will influence their road testing analysis?
From the article:
Consumers are realising Tesla isn’t the only electric car
Not long ago, Tesla’s electric vehicles were simply the best on the market. If you wanted a stylish EV, Elon Musk would be your most likely supplier — even if you hated his guts. But not anymore.www.theage.com.au
The new competition makes Musk’s recent role as the town crier for the red-pilled online right especially puzzling and, for his car company, perilous. Musk’s chaotic and polarising tenure as Twitter’s chief executive — during which he’s embraced far-right tropes about gender and journalism and public health, and generally behaved like a rich bully on a power trip — already seems to be battering Tesla’s brand.
The Wall Street Journal reported last month on a survey by Morning Consult showing that perceptions of Tesla have been falling steadily since May, shortly after Musk began his bid for Twitter; between October and November, the period when Musk took ownership of Twitter, sentiment among Democrats toward Tesla plummeted, while favourability among Republicans rose slightly.
It’s hard to disagree. A few weeks ago, I test drove Chevy’s new Bolt EUV, the squat electric crossover that is the slightly larger cousin of the Bolt EV, the entry-level electric car that General Motors began selling in 2016. I was bowled over by the new Bolt electric utility vehicle. I found it surprisingly roomy and much nicer on the inside than its staid exterior would suggest.
I also liked that its interior felt a lot more like a normal car than Musk’s all-touchscreen automotive design style. In the Bolt you can control the air conditioning and other systems with hefty buttons and knobs that are easy to find and manipulate while you’re driving; in a Tesla almost everything is controlled by touching a big screen mounted in the centre console.
The best thing about Chevy’s Bolt EUV: The model I tried, which was kitted out with nearly every available option, including GM’s fantastic driver-assistance program, Super Cruise, carried a sales price of just under $US38,000. Tesla’s cheapest car, the Model 3, sells for upward of $US45,000 ($65,600). As I drove the Bolt, I asked myself a question that came up often this year: With such great alternatives that carry none of Musk’s political baggage, why does Elon keep acting as if customers have no choice — as if he’s the only game in town?
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