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A comment on Tesla drops 7% after Goldman Sachs says the stock is worth $180. Parent comment

Re:Tesla drops 7% after Goldman Sachs says the stock is wort... by k-mcgrady on Wednesday July 05, 2017 @07:01PM (#14706838)
>> Buy inferior battery packs at a higher cost from a different supplier? Try to replicate Tesla's battery technology and then convince your board to build a gigafactory so you can produce them at the required volume and cost?

Why not another option - battery manufacturer notices that if they build an equiv. battery they can sell to every car manufacturer in the world. With the higher volume they'll be able to do it for less than Tesla if they are only building for their own cars.

[ Parent | on HN ]
Re:Tesla drops 7% after Goldman Sachs says the stock is wort... by HiJon89 on Wednesday July 05, 2017 @08:12PM (#14707239)
How long will it take them to catch up with Tesla (while Tesla is simultaneously advancing their own battery tech)? And even if they can hit that milestone, they'd presumably have some amount of profit margin built into the prices. So to actually compete with Tesla on battery price (and why would they even want to) they'd need to advance beyond Tesla in terms of manufacturing efficiency and/or volume. I don't know of any company poised to fill this gap in the foreseeable future.
[ Parent | on HN ]