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RE: Leo Talk 3/13/2021 -Come Join Our Chat

The fact that Tesla made it does not mean it is any easier. Granted EVs are a lot easier than ICE to break into, much lower cost to set up. However, there is a reason we went 100 years without a new automaker selling 500K cars in a year. It is a tough business to get into.

Sure Amazon could do it since they have so much cash flow and credit. But it is not for the weak.

And a lot of these start ups have grand ideas. As Musk will tell you, it is a lot easier to design software than it is to build lines to pump out cares on an increasing basis.

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Yes but the thing I like about Tesla that the other dealers don't do is direct sale to the consumer. I hate the car dealers whose goal is to rip off as much money as possible.

As for the cars, even Tesla has some faults in their cars and given the need to build everything from scratch, the initial costs are huge. You need to blow plenty of money and spend years to recoup the costs.

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Any other start up that makes it will not be going direct. In fact, I would not be surprised if some of the traditional automakers start to drift away from the dealerships at some point.

Tesla has an advantage there. The manufacturer sells the car to the dealer who marks it up. Thus, Tesla can either keep the extra profit or drop the price by what the dealer is making.

Either way, they come out ahead.

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