Featured Tesla uses profits as a weapon

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by bwilson4web, Jan 22, 2023.

  1. bwilson4web

    bwilson4web BMW i3 and Model 3

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    Source: Analysis: Tesla uses its profits as a weapon in an EV price war | Reuters

    Tesla earned $15,653 in gross profit per vehicle in the third quarter of 2022 - more than twice as much as Volkswagen AG (VOWG_p.DE), four times the comparable figure at Toyota Motor Corp (7203.T) and five times more than Ford Motor Co (F.N), according to a Reuters analysis.

    [​IMG]

    The nerve! What are they, capitalists?

    Bob Wilson
     
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  2. PriusCamper

    PriusCamper Senior Member

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    Another great example of why there's way more profit in electric cars in the long run once manufacturers streamline production & lower costs... Fewer and fewer parts will be needed in these cars in the future.

    In a few years other EV car makers will be following in Teslas footsteps. Probably not Toyota though because they're betting on fossil fool industry winning.

    Tesla's effort to lower cost of production a couple years back has arrived just in time because their stock's collapse and loss of market share thanks to Musk hating on all the "woke" buyers of his products led to a decline in sales. And because they could afford to drop their prices by 20% they've boosted declining sales by 50%.
     
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  3. 3PriusMike

    3PriusMike Prius owner since 2000, Tesla M3 2018

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  4. Todd Bonzalez

    Todd Bonzalez Member

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    Context is everything I suppose...

    "Earned" being the operative word, since the recent price reductions will have wiped out a big chunk of that profit per vehicle.

    Have you got any figures for net profit though?

    It's also interesting that the graph above includes a bunch of Chinese brands we don't get in the West, considering that in the Chinese domestic market...

    Tesla Cuts Prices To Compete For EV Sales And Tax Incentives — Will The Discounts Be Enough To Spur Lagging Sales?

    I forget, what was the point of the original article again?
     
  5. Zythryn

    Zythryn Senior Member

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    According to the graph in the post you quoted, approximately $9,500.

    As Texas & Germany plants get closer to capacity, Tesla’s costs will come down.
    As supply chains loosen up, Tesla’s costs will come down.

    I don’t see this price cut being much of a concern.
     
  6. bwilson4web

    bwilson4web BMW i3 and Model 3

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    You might look at Wright's Law that states as the production rate increases, the per piece cost decreases.

    Bob Wilson
     
  7. PriusCamper

    PriusCamper Senior Member

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    That's true if you have competition... But if you're a monopoly then there's no pressure to lower prices, which is a huge problem these days due to anti-trust laws not being enforced and acquisitions & mergers being allowed by pretending fake mitigations will resolve the problem. Ever since Citizen's United ruling by SCOTUS bribery is perfectly legal and near unlimited billions in election campaign donations means bribery at the highest levels of government is legal...
     
    #7 PriusCamper, Jan 23, 2023
    Last edited: Jan 23, 2023
  8. bisco

    bisco cookie crumbler

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    why is everyone so bummed about teslas price decrease, but thrilled with bolts?(n)
     
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  9. vvillovv

    vvillovv Senior Member

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    Price reductions could be more of a competitive strategy for BYD recent price increase, more than a way to get under the skin of recent buyers here in the west. Just another idea from the cheap seats near where I am.
     
  10. PriusCamper

    PriusCamper Senior Member

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    Why would BYD (a Chinese Automaker) be a factor if they aren't a global competitor among major automakers?
     
  11. bwilson4web

    bwilson4web BMW i3 and Model 3

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    I’m please but then I drive a Tesla and own TSLA stock.

    Bob Wilson
     
  12. Trollbait

    Trollbait It's a D&D thing

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    Cause manufactured Tesla outrage gets clicks. People that recently bought at the higher price would be upset no matter the car make or model, but it's Tesla. So they being upset is considered news.

    The Chinese auto market, not just EVs, is the largest one in the world. In 2021, 50% more new cars were bought there than in the US. BYD was number 10 on a list of 100. Tesla is 15. BYD is expanding to markets outside China.
    China car sales analysis 2021 - carsalesbase.com
     
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  13. Todd Bonzalez

    Todd Bonzalez Member

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    lol so you made a thread to pat yourself on the back. Good work.

    That's a bit like the punchline to the "How do you tell if someone's vegan?" joke... THEY'LL TELL YOU! :LOL:

    Thanks for the brief amusement though
     
  14. bwilson4web

    bwilson4web BMW i3 and Model 3

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    Posted to find out if there is a problem with "Tesla uses profits as a weapon" that escaped me and Elon Musk.

    Bob Wilson
     
  15. bisco

    bisco cookie crumbler

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    then people who purchased bolts should be unhappy, but i haven't seen the outrage.

    i do understand the clicks though, and bolt would never get any, no matter the headline
     
  16. Trollbait

    Trollbait It's a D&D thing

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    Do you personally know someone that bought a Bolt at the higher price?
    I admit to being annoyed about missing out on a discount with the Sonic. That is probably a common occurrence with car buyers. How many are actually happy with the deal or experience from the dealer? Tesla's lack of dealers means the ire generated price shenanigans gets direct at them. That news is more likely to spread beyond local than if it was just a dealer.

    Saw a headline about a Tesla buyer feeling bullied into buying before the end of the year in the past few days. How often is that happening at a dealership, with the add ons and extended warranties? Why isn't that news?
     
  17. bisco

    bisco cookie crumbler

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    idk anyone who has purchased a bolt period.except here. the tesla outrage here is not due to people who bought a tesla at a higher price, it's due to tesla haters with an ax to grind.

    the few people here who purchased bolts before the price drop have not come back to whine about it
     
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  18. mikefocke

    mikefocke Prius v Three 2012, Avalon 2011

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    Gee I am generally pleased with the selling dealership experience for my last three cars. Price and communications great. Delivery quality not great in two of them (tire air pressure in one, dent in rear trunk in another). It helped that all were at least $3k under MSRP. But that was then ...
     
  19. bwilson4web

    bwilson4web BMW i3 and Model 3

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    The most recent dealer experience:
    • Tesla Model 3 - no dealer, just sign papers and drive home.
    • Prius Prime - used 'tarbox' Toyota internet sales. Effectively, shut up, how much do you need,
    • Gen 3 Prius - bought via special program from Toyota with delivery from Decatur Toyota.
    • BMW i3-REx - bought from reseller. How much, did you get the 'check in the mail?'
    • Toyota Echo - two visits, went to tell them 'Sorry, I have to look elsewhere.' Sales manager, "We have worked hard to not sell you the car." Some phone calls and picked it up the next week.
    Bob Wilson
     
  20. bisco

    bisco cookie crumbler

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