Re:Rivian valued at over $100B after biggest IPO of 2021
by panick21_ on Wednesday November 10, 2021 @11:30PM
(#29184439)
The other car companies were never vertically integrated. Huge parts of their profit went to dealerships and suppliers. The suppliers and dealers often have better market valuations comparatively.
Current manufactures make almost no margin on cars and make decent margin on supply of parts.
Tesla own that whole chain end to end. As they scale up and build up a huge fleet of cars that need service that is not covered this will become a hugely profitable business.
Other car companies are buying batteries and that is almost 1/3 of the cars price. Tesla will make their own batteries. Most other car companies will buy their driving assistant tech, Tesla has it in-house.
Solar and utility storage are small markets now, but they will continue to grow and no other car manufactures has anything in that range.
Maybe Tesla will not be worth what they are now, but they deserve to be way higher then GM/Ford and so on.
Current manufactures make almost no margin on cars and make decent margin on supply of parts.
Tesla own that whole chain end to end. As they scale up and build up a huge fleet of cars that need service that is not covered this will become a hugely profitable business.
Other car companies are buying batteries and that is almost 1/3 of the cars price. Tesla will make their own batteries. Most other car companies will buy their driving assistant tech, Tesla has it in-house.
Solar and utility storage are small markets now, but they will continue to grow and no other car manufactures has anything in that range.
Maybe Tesla will not be worth what they are now, but they deserve to be way higher then GM/Ford and so on.