/sci/ - Science & Math

>>12440331
Even if you want to value Tesla strictly as an automotive company with traditional margins, the comparison is retarded because you're comparing ICE production figures to EV production like they're equivalent. Being able to produce a lot of ICE vehicles is like being able to produce a lot of horse drawn wagons wagons just before the automobile became popular. Not only are the traditional auto companies struggling to produce a limited amount of EVs that they sell at a loss just to be remotely competitive with Tesla, they're going to have to do it while their ICE margins greatly decline because of the economies of scale working in reverse. Meanwhile TSLA has the economies of scale in their favor from producing many more EVs than their competition and they can sell their vehicles at a lower margin because of all their software based income from leading on that frontier, software as a service.

This leaves the other automakers with limited profit, terrible margins, and billions of dollars worth of depreciating assets. This is in an industry that is going to need less annual vehicle production, not more, as autonomous vehicles achieve higher use rates and fewer cars are needed because of it.
>>12440379
That is not going to happen and Elon was just being kind by saying that he would consider it. Tesla learned with Fremont that it's less efficient to buy a factory and try to retrofit it for EV production than just building one from scratch and they're already building factories as fast as possible with like 20 billion worth of cash on hand. They would be forced to deal with thousands of unionized employees, a lot of which have to be fired because EV production needs fewer workers, and that's part of the reason why other auto companies are so slow to transition. The other major reason being the dealership model as service is the number one source of revenue for dealerships and since EVs require much less maintenance they lean on automakers to not produce them.