concordtom said:
DiabloWags said:
concordtom said:
I recently saw that Tesla market cap is as big as the other 10 largest vehicle manufacturers globally?
Omg, recipe to get crushed.
People pay for growth.
The other auto manufacturers havent been growing.
That growth is speculative.
Is Tesla auto going to take over all that other volume? Doubtful.
Those other companies have yet
"to take over all that other volume".Let alone at what kind of profit margins.
Your claim is just as speculative Tom.
For example, take a look at Rivian, the latest EV player on the block.
They have backing from Ford and Amazon. (Amazon has ordered 100,000 EV delivery vehicles).
They're trying to put out multiple vehicle models simultaneously (never been done before) while trying to scale and secure supply of battery cells and semi-conductor chips. - - - Their R1T truck beat Tesla and GM to the punch, but production has been slow and their SUV has been pushed back a bit as well. They've also had to increase the price of that SUV by 20% to $84,000 and the truck by 17%. In doing so, it's literally an admission that their original truck and SUV prices were
structurally unprofitable.In the meantime, they are expected to burn Billions in cash this year and will be hard pressed to achieve the
25,000 vehicles that they have forecasted to build this year, which is quite a bit lower from their original guidance from earlier this year of 50,000 units. They produced 2,553 vehicles in Q1.
Can legacy auto builders GM, Ford, and Stellantis scale up quicker and at better margins?
Perhaps they can. But they have yet to do so.
Tesla already has.
And is doing so at industry leading margins.