Re:Why Tesla Is Worth More Than GM
by Animats on Tuesday July 04, 2017 @01:12PM
(#14697046)
Now that makes sense. The article is mostly generic new-economy blathering.
We'll know in a few months if Tesla will be a success. For their Model 3, Tesla has to transition from being a high-margin low-volume manufacturer to a low-margin high-volume manufacturer. That's very tough. Few companies succeed at that.
Already, the price of the Model 3 has crept up. The base vehicle is supposed to sell for $35K, but in practice most models will be around $45K with upgrades. Maybe higher. Overpriced upgrades are where the profit comes from in automotive. That may be how Tesla escapes fighting it out on cost with Chevy and Toyota.
We'll know in a few months if Tesla will be a success. For their Model 3, Tesla has to transition from being a high-margin low-volume manufacturer to a low-margin high-volume manufacturer. That's very tough. Few companies succeed at that.
Already, the price of the Model 3 has crept up. The base vehicle is supposed to sell for $35K, but in practice most models will be around $45K with upgrades. Maybe higher. Overpriced upgrades are where the profit comes from in automotive. That may be how Tesla escapes fighting it out on cost with Chevy and Toyota.