Quote:
Originally Posted by aturnis
I guess I don't think it remains to be seen, and I don't understand how he has a poor track record.
Tesla has MUCH better profit margins than traditional OEMs, aim for 25% across the board as o pad to the 5% industry standard. And production/profitability seems to literally be only a matter of time. At least, I can't think of any real hurdles to this. Really the hardest part is growing and managing your supply chain in unison.
As far as track records, I mean, hasn't he accomplished all of his goals since 2012 up until this point? I bet you'd be hard pressed to find others who have done so well.
|
$80,000+ sports cars have huge markups and relatively small production runs. Because of the high mark ups, you can have multiple recalls and still make a profit. Anyone who can afford to buy a $80,000+ car, can afford to be without it for a week while it is recalled. They already own a separate vehicle or have alternatives that aren't going to put them out.
That just isn't true of the mass produced middling priced cars. The margins are thinner. Recalls can eat up the thinner profit margin and drivers are going to be more upset about the recalls.
His track record is fine if he sticks to high markup roadsters. His track is very poor if he wants to compete with Toyota.