Keep telling yourself that. Tesla has survived because investors are willing to put up the money while they lose money, but it will be about earnings in the end.I take it you're new to the Tesla bashing thing. These arguments have been echoed for over a decade now - they're quite stale.
The Truth About Cars ran a series called "Tesla Death Watch" back in 2008, because, supposedly, Tesla was going to implode any moment. Here's their first post:
https://www.thetruthaboutcars.com/2...dont-plan-to-build-any-cars-for-another-year/
Tesla isn't some small player anymore. They're the 13th most common brand in the US, with 2% of the market and growing rapidly. The players at the top shift back and forth between 6% and 12%, so Tesla is certainly on the brink of their league if not already in it.
If all those other companies "understand" electric vehicles, why aren't they building them in any significant quantities?
It's simple - it's an extremely similar reason to why the iPod never faced any significant challenge during its entire life. The iPod locked up the entire supply chain for small hard-drives - it took ~5 years for supplies to reach the point that competitors could get their hands on volumes anything like what Apple was using for the iPod. By that point, Apple had pivoted into the iPhone already. Similarly, Tesla has a massive lead on battery supply chains.
That's just one reason Tesla crushes the competition. There's at least a dozen others.
You think BMW is going to just let Tesla take their business? I don’t even think Tesla is in the top 10 of strongest or desirable car brands. There are many more desirable brands with incredible manufacturing prowess.
The trouble with Tesla is that they aren’t making something that’s ready for prime time, so comparing it to the iPod isn’t the same.
Gas cars are still more convenient, economical, and desirable in most cases. Electricity isn’t free or clean.
When electric cars are a thing, Tesla will face intense competition from frankly better brands. Electric vehicles are just a small business right now.
Tesla has zero manufacturing prowess. They are still learning how to make cars. Again, their entire production facility is something Toyota basically threw away
They aren’t doing anything amazing. They are making cars at the end of the day and doing so unprofitably most quarters. They are losing subsidies soon too.
Tesla has a long road ahead and has to keep doing it. It’s a hugely capital intensive business.
Selling more cars is actually bad from a cash flow perspective.
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