Re:AMD passes Intel in market cap
by r00fus on Monday August 01, 2022 @03:32PM
(#32311006)
> >Their gross margin on cars is the highest in the industry.
> They have a completely different sales model, so it's apples to oranges. Most OEMs wholesale cars to dealers, of course those margins will be smaller.
This is the crux of the innovator dilemma - that their dealer sales model was a moat to prevent new entrants, and it could be their lodestone as well, preventing them from actually being able to compete with Tesla (since shifting from that will likely prove to be difficult/impossible).
Doesn't hurt Tesla that dealers are notoriously unpopular with customers.
Re:AMD passes Intel in market cap
by powerhour on Monday August 01, 2022 @11:09PM
(#32314731)
I never got the impression that Big Car wanted to maintain the dealer franchise laws. I thought that was something the dealers themselves buy from state representatives.
> They have a completely different sales model, so it's apples to oranges. Most OEMs wholesale cars to dealers, of course those margins will be smaller.
This is the crux of the innovator dilemma - that their dealer sales model was a moat to prevent new entrants, and it could be their lodestone as well, preventing them from actually being able to compete with Tesla (since shifting from that will likely prove to be difficult/impossible).
Doesn't hurt Tesla that dealers are notoriously unpopular with customers.