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Only 7.9 percent of all of their sales is outside of China. They can generate fancy numbers galore on domestic soil where they have both production subsidies as well as government aid for buying said vehicles, but it's very unclear how they're going to fare outside of China.
I think the wave of tariffs is showing that fundamentally cars are becoming low margin businesses with the rise of electric cars, which is good for consumers and bad for producers.
I don't see how it's possible to stop China, even if rich western countries band together.
Only 7.9 percent of all of their sales is outside of China. They can generate fancy numbers galore on domestic soil where they have both production subsidies as well as government aid for buying said vehicles, but it's very unclear how they're going to fare outside of China.
I think the wave of tariffs is showing that fundamentally cars are becoming low margin businesses with the rise of electric cars, which is good for consumers and bad for producers.
Right now seems most of his customers may be from people concerned about the environment and/or Climate Change. As time goes on, that will probably change.
There is a reason heads and owners of Companies try and stay out of politics.
Only 7.9 percent of all of their sales is outside of China. They can generate fancy numbers galore on domestic soil where they have both production subsidies as well as government aid for buying said vehicles, but it's very unclear how they're going to fare outside of China.
What's interesting is how they compete with other brands, and I think the trend is for BYD to increase their market share in all countries.
However, I would have liked to have more figures.
Only 7.9 percent of all of their sales is outside of China. They can generate fancy numbers galore on domestic soil where they have both production subsidies as well as government aid for buying said vehicles, but it's very unclear how they're going to fare outside of China.
Wow, really good that Tesla has received no government subsidies then. :) https://www.ft.com/content/8179bd8a-4d96-43a9-a8f9-074f9a275...
US government has handed out tons of low/no interest loans, tax incentives, and tax credits to spur development and deployment of EVs and related technologies like charger infrastructure.
Just this year, there was a $4500 tax credit towards leasing a number of vehicles. I leased a Prius Prime (one of the vehicles eligible) and basically got $4500 off the sticker. Bought out the lease and purchased the car for $4500 off.
I think the wave of tariffs is showing that fundamentally cars are becoming low margin businesses with the rise of electric cars, which is good for consumers and bad for producers.
The issue with the tariff approach is that they generally apply to countries that actually have an auto industry, but not all countries have one. Countries without tariffs will enjoy lots of competition and cheap prices, while established automakers with tariff protections will be squeezed out. I don't see how it's possible to stop China, even if rich western countries band together.
Flooding foreign markets with your heavily-subsidized cars in order to kill your competition is great for you, but not so great for competitors in the market of sale.
Earlier quoted context omitted.
Is Tesla mentioned in the FT.com article? I can't access it. On https://apnews.com/article/microchip-electric-vehicles-batte... Tesla is only mentioned by one state loosing a project. "Many of the companies drawing the biggest subsidy offers — such as Intel, Hyundai, Panasonic, Micron, Toyota, Ford and General Motors — are profitable and operate around the globe. Some lesser-known names in the nascent EV field are ge…
Over $2bn in state and federal subsidies - https://archive.is/g5Gnb https://imgur.com/a/XYSSnTQ
At any rate, $2B is a drop in Tesla's bucket; their quarterly revenue is around $25B now. That $2B may have been given at a critical time in Tesla's development and growth, but today it would be 2% of their yearly revenue.
I think the wave of tariffs is showing that fundamentally cars are becoming low margin businesses with the rise of electric cars, which is good for consumers and bad for producers.
Cars was always a low margin business, that's why no one makes them anymore. Car OEMs contracted out every component and system possible. Almost all the value in modern cars is various tiers of suppliers. There's a Mercedes model they contracted out even final assembly. They went to the same Jack Welch school of business that boeing did and thought they were clever not being responsible for anything and could just be…
Mercedes thought themselves to be untouchable due to it being a premium brand with high margins by putting a star on commodity parts, like they're a Swiss watch.