News for hackers. Stuff that matters.

A comment on Tesla Surges Above $500, Leaving Analyst Targets in the Dust. Parent comment

Re:Tesla Surges Above $500, Leaving Analyst Targets in the Dust by lhnz on Monday January 13, 2020 @11:38AM (#22035935) 

  > Tesla does a lot more in-house, which adds to the 
  > valuation, whereas the existing companies will buy
  > a lot of their parts and/or contract out work.
In that respect, they remind me of Apple. However, I thought cars and their component parts were considered to be commodities. Are investors now arguing that not having hardware design know-how is going to hurt the big car companies?
[ Parent | on HN ]
Re:Tesla Surges Above $500, Leaving Analyst Targets in the Dust by mywittyname on Monday January 13, 2020 @12:55PM (#22036810)
It's cheaper this way.

The suppliers are beholden to their master and can live or die on a whim. GM, et al know the cost of manufacturing down to a penny and control supplier margins very tightly. They also collude with other manufactures to suppress prices.

[ Parent | on HN ]