Reason behind is with so many decades in Auto industry.... running big huge factory requires minimum of 75-80% capacity to be running to stay positive....So what Tesla is doing is increasing volume and decrease margin, end result will be better if all key points are calculated correctly. And prime focus on EV i don't see Tesla running in any problems.
And Tesla dedicated charging network is just one of other sources of income not to mention all other assets that they are involved in.
And they had couple of good years of running higher than normal margins so now they can afford price reduction because of vertical integration and improving production costs.
I would not underestimate Tesla company ( and for one thing I give them big respect, they are inventors and not manufacturer that is buying out of the shelf hardware and making vehicles).
And any American should be proud of Tesla it is American made.
Manufacturers that produce big volumes may not have big margins, but they enjoy big business discounts on raw materials when buying in big volumes.... in car manufacturing business there is much bigger picture than just end result ( vehicle out of assembly line).
And Tesla dedicated charging network is just one of other sources of income not to mention all other assets that they are involved in.
And they had couple of good years of running higher than normal margins so now they can afford price reduction because of vertical integration and improving production costs.
I would not underestimate Tesla company ( and for one thing I give them big respect, they are inventors and not manufacturer that is buying out of the shelf hardware and making vehicles).
And any American should be proud of Tesla it is American made.
Manufacturers that produce big volumes may not have big margins, but they enjoy big business discounts on raw materials when buying in big volumes.... in car manufacturing business there is much bigger picture than just end result ( vehicle out of assembly line).
