Learning curves are a tricky beast though. While the incremental benefit during the early stages is enormous, it doesn't act as a particularly good competitive moat.

Someone with say a large budget and global operations can easily stomp on it. The fact that VW's INITIAL planned capacity (800 p/d this spring [0]) is almost equal to Tesla's total capacity after all their ramping up should be quite informative as to how fragile Tesla's lead is.

The traditional car makers clearly got sucker punched here by a masterful Musk move...but I didn't hear any giants drop yet. Which to me suggests they might be swinging back somewhere in the future.

[0] https://insideevs.com/news/380318/vw-id3-production-30-day/