Opportunity cost is the standard, not profitability. Companies generally try to invest in their core competencies and outsource the rest. The Nvidia deal with Groq is an example. They spent $20B for Groq's inference technology while leaving their profitable cloud services business alone. Selling shovels instead of mining gold can be a rational choice even when gold mining is profitable. And the shovel companies do better when gold mines are profitable.
If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
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Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#12Not really, kind of like Uber doesn't buy its own cars. The CyberCab owner provides the capital and parking spot and some maintenance, while Tesla takes a cut, just like Uber does. I'd be happy to have my car earn money for me while I'm away at office or away on a business trip.
Uber doesn't buy its own cars because it isn't profitable given the depreciation and originally the higher risk of getting someone declared an employee. If they are choosing a car and losing money on it they are an entrepreneur. (Also Tesla doesn't want you to rent your car as that reduces their market so they want to sell another one in a fleet.)
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#13Amazon subcontracts their delivery services, so there are probably additional factors driving Teslas decision. My guess is the insane liability a car accident can create. Trucking companies have had to pay out millions, even for accidents where they weren’t at fault.
A big part of Amazon's "Delivery Service Partner" program is that it creates many smaller work-forces rather than one big one, which prevents unionization. On the other hand, Amazon can probably afford accident insurance.
The fact that robot taxi's won't form a union makes this rather unlike Amazon DSP's. I suspect the article is correct. There simply aren't net profits here for operators.
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#14The reason Tesla won't sell me one is that I'm not buying anything from Musk.
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#15Earlier quoted context omitted.
I would bet that if self driving software was involved in any accident, it is the company who developed the software who will be paying, even if someone else owns the car.
I would be very surprised if the manufacturer would sell you one without you agreeing to indemnify them.
> I would be very surprised if the manufacturer would sell you one without you agreeing to indemnify them.
Why would anyone other than a fool agree to indemnify Tesla against liability for a vehicle whose driving behavior is controlled by Tesla?
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#16[dead]
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#17Dumb take but but I guess that journos gotta earn a living … I bet his draft folder has a doc with the title “if US treasuries were profitable, US gov wouldn’t sell you one”
It’s a junk website. I know the word has bad connotations but literal fake news
It's an opinion piece, I'm at a loss as to how it could be "fake". Regardless, the owner of the site is still pissy about...something to do with Tesla, I've since forgotten. Doesn't make him wrong, but it's certainly a consideration when reading Electrek.
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#18Not really, kind of like Uber doesn't buy its own cars. The CyberCab owner provides the capital and parking spot and some maintenance, while Tesla takes a cut, just like Uber does. I'd be happy to have my car earn money for me while I'm away at office or away on a business trip.
This isn't making the point you think it is...
Uber doesn't buy the cars because it's not profitable.
They let the driver eat the depreciation, assume the capital risk, and deal with lemons and accidents.
No one drives Ubers thinking they're going to get rich, and I sure don't see companies buying up vehicle fleets to put into service on Uber.
Because it's a money losing proposition.
Why do you think Tesla is trying to also offload it onto suckers?
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#19you could make this same argument about any business and any mechanism that raises outside capital to expand.
If McDonald’s restaurants were profitable, they wouldn’t sell franchises. Except it’s been an incredibly successful way to raise capital and expand, for both franchisees and McDonalds.
If company about to IPO were a great investment, they wouldn’t IPO. Except the stock market has been an incredible mechanism for company and capital growth.
Re: If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
#20Earlier quoted context omitted.
I would be very surprised if the manufacturer would sell you one without you agreeing to indemnify them.
> I would be very surprised if the manufacturer would sell you one without you agreeing to indemnify them. Why would anyone other than a fool agree to indemnify Tesla against liability for a vehicle whose driving behavior is controlled by Tesla?
There are a lot of fools out there. The real question is whether a clickwrap indemnification would hold up in coult; I suspect it wouldn't.