I wonder if this will become the new norm in general. There's some upside to this type of pricing structure for both manufacturers and consumers. Manufacturers could streamline and simplify their assembly lines by reducing or eliminating the number of models they make for each vehicle. Consumers can select which features they want and perhaps be able to get things in combinations that are not currently available the way vehicle models are sold now.
I don’t know if it’s the right kind of streamlining to have every feature physically installed in a car but basically greyed-out. Manufacturing costs will be more for each vehicle and be susceptible to supply-chain disruptions if they go with this kind of enable-on-demand strategy.
It will be dreadful for the consumer, like Netflix has done for TV, looks like a good deal at first but pretty soon you have to drop 300 a month to access the 15 or 20 different streams you need to watch all the various things you want to see, you'll find yourself wondering 'what the eff is DAZN and why do I have to pay them to watch West Ham??'
Is there another car manufacturer that makes as much per car as Tesla?
I'm no expert in the automotive economics area, but the margins seem insane to me. Gross margins for a vehicle of 27.9% this quarter seems positively insane, especially in light of the commodity price explosions for raw materials
It will be dreadful for the consumer, like Netflix has done for TV, looks like a good deal at first but pretty soon you have to drop 300 a month to access the 15 or 20 different streams you need to watch all the various things you want to see, you'll find yourself wondering 'what the eff is DAZN and why do I have to pay them to watch West Ham??'
Tesla has just applied for a CRTC license to be a telecommunications reseller in Canada. Might be for car to car relaying for their connectivity network for infotainment, or possibly for Starlink access. In any case this is going to cost a subscription.
I live in a condo, parked 3 levels underground and surrounded by concrete and the damn car is still able to watch Youtube, Plex, and be able to be controlled remotely. I might just have to splurge for the $15/month Premium Connectivity package. If only Canada had the yearly subscription available.
An elderly lady rammed into my model 3. Air bags went off, Windows rolled down, and Tesla called my partner before I had the chance to check on the second elderly lady she hit on her way to a neighbors front lawn.
We are all fine, but I'm just worried it will be totalled and they won't take into account how the cost of FSD has more than doubled since I got the software. And now I have to pay for gasoline! Not to mention the wait times for these things.
The same car year/model/trim is selling for more now than when I got it at the start of the pandemic. Brutal.
Is there another car manufacturer that makes as much per car as Tesla?
I'm no expert in the automotive economics area, but the margins seem insane to me. Gross margins for a vehicle of 27.9% this quarter seems positively insane, especially in light of the commodity price explosions for raw materials
Another EV manufacturer would be a fairer comparison.
And no, I doubt there is one.
But Tesla has as big manufacturing head start, and has a higher price point. As more competition comes along, I'd imagine their margins will drop. No?
I would agree. But the proof is in the pudding in regards to the "electric cars can't scale, they're unprofitable, and no one wants them" arguments from OEMs over the last 8-10 years.
My point is that it all boils down to profit really being the reason OEMs claimed they couldn't make EVs. That argument now falls flat on its face. The shift is now on with most OEMs planning to electricify their entire fleet by 2035 and it's profit, not "green washing" driving the change. Electric is more profitable. VW, Mercedes, Ford, GM, BYD, Volvo, Jaguar-Land Rover, among others. And I'm certain more will be added and those deadlines will be moved up, not back.
It's existential to do so and to such a point that Toyota is now way behind and spends almost as much as O&G on lobbying against EV adoption legislation:
J1772 / CCS is somewhat interchangible terminology. Level 3 just has the additional lower ports for the DC connections.
The point is, the worlds car manufacturers have determined a standard for EV charging. Tesla even uses it worldwide.
Every Tesla sold now in north America is a vehicle that will require an adaptor to charge in the future - EVEN at tesla's own stations.
I thought about replying to this for a while cause it seems this is a Tesla bashing thread...I get it, it's easy to do. But as far as J1772 and CCS being "somewhat interchangeable", they are absolutely not. The J is level 2, the CCS is level three. Go to Plug Share and find a J only charger with less than 20% charge and expect to charge as fast as a CCS(which you say is relatively interchangeable)and I will say, you get what you deserve, which is a low charge speed and long wait times.
Casually saying that J and CCS is comparable is stupid and dangerous to many people out there who aren't educated in charging types(me months ago) As speed goes, they are different
Also could you point out how Tesla owners will have to use adapters to use Tesla's own stations?
I would agree. But the proof is in the pudding in regards to the "electric cars can't scale, they're unprofitable, and no one wants them" arguments from OEMs over the last 8-10 years.
My point is that it all boils down to profit really being the reason OEMs claimed they couldn't make EVs. That argument now falls flat on its face. The shift is now on with most OEMs planning to electricify their entire fleet by 2035 and it's profit, not "green washing" driving the change. Electric is more profitable. VW, Mercedes, Ford, GM, BYD, Volvo, Jaguar-Land Rover, among others. And I'm certain more will be added and those deadlines will be moved up, not back.
It's existential to do so and to such a point that Toyota is now way behind and spends almost as much as O&G on lobbying against EV adoption legislation:
Is there another car manufacturer that makes as much per car as Tesla?
I'm no expert in the automotive economics area, but the margins seem insane to me. Gross margins for a vehicle of 27.9% this quarter seems positively insane, especially in light of the commodity price explosions for raw materials
Ferrari gross margins are just over 49% and have hovered around 50% for the past 5 years. I would expect Porsche to be similar, or better. To be fair, that shouldn't be a surprise based on the higher price points.
Tesla's numbers are phenomenal at their price point. Another contributing factor is the lack of dealerships; Tesla mostly sells direct and therefore doesn't have to leave any profit for their dealers.
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Tesla also has effectively no paid advertising, which reduces overhead.
Every single car commercial I see on any streaming media and sports just makes me want to not buy the car they are advertising. Car advertising is insidious and they replay the same ones over and over again.
Every single car commercial I see on any streaming media and sports just makes me want to not buy the car they are advertising. Car advertising is insidious and they replay the same ones over and over again.
I thought about replying to this for a while cause it seems this is a Tesla bashing thread...I get it, it's easy to do. But as far as J1772 and CCS being "somewhat interchangeable", they are absolutely not. The J is level 2, the CCS is level three. Go to Plug Share and find a J only charger with less than 20% charge and expect to charge as fast as a CCS(which you say is relatively interchangeable)and I will say, you get what you deserve, which is a low charge speed and long wait times.
Casually saying that J and CCS is comparable is stupid and dangerous to many people out there who aren't educated in charging types(me months ago) As speed goes, they are different
CCS is a J1772 plug with an extra bit on the bottom for level 3. Everyone else clearly understood what I meant, but fine: every other manufacturer has largely standardized on J1772 & CCS but Tesla uses their own stupid proprietary charge ports in North America.
Better?
__________________
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GO FLAMES GO.
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CCS is a J1772 plug with an extra bit on the bottom for level 3. Everyone else clearly understood what I meant, but fine: every other manufacturer has largely standardized on J1772 & CCS but Tesla uses their own stupid proprietary charge ports in North America.
Better?
Meh, Tesla is less clunky and more streamlined for charging. Easy to use, no multiple accounts across different networks to worry about and much faster...
Now they have a CCS adapter along with the J there are way more charging options
