After Years Of Claiming Tesla Isn't Competition German Automakers Struggle To Make A Profitable Equal

After Years Of Claiming Tesla Isn't Competition German Automakers Struggle To Make A Profitable Equal
It is no secret that the legacy automakers are making the transition to electric vehicles only reluctantly, in response to regulatory pressure from governments and to competitive pressure from Tesla. Contrary to what many seem to believe, Big Auto’s reluctance to embrace EVs is not merely the usual corporate fear of the future, nor is it the result of any oil industry-fueled conspiracy (as far as we know). It’s a simple matter of money – there are good reasons to believe that electrification will take a major bite out of industry profits, as BMW and Daimler execs recently acknowledged.
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atc98092atc98092 - 10/10/2018 12:29:32 PM
-3 Boost
I don't think that was in any part the article. The question asked is, how can other manufacturers make a profitable EV? And that is the bottom line question.


zliveszlives - 10/11/2018 7:47:49 PM
+1 Boost
if NO-ONE can make a profitable EV... perhaps the problem is that the tech is not ready for mass market and should not be pushed.


SanJoseDriverSanJoseDriver - 10/10/2018 12:14:50 PM
-8 Boost
There is a gross margin on all their products, net margin profit is eminent.


TomMTomM - 10/10/2018 2:07:26 PM
+9 Boost
ANd yet - at TEsla - - they have announced that THEY cannot make a Base Model 3 at a profit as well - which is WHY they are now postponing its production. ANd its Profitable production is NOT eminent at all.

What is clear is the if it were not for some VERY high priced option packages - the Model 3 would be a complete failure - and the rest of the Tesla line is priced well above $60,000.

What ALL manufacturers are having a problem with it actually producing a MASS MARKET targeted EV (Clearly - at the prices the Model 3 actually sell at - they are not it) -in a middle class price range ($30-35,000) - that can make a profit. And Frankly - I don't believe anyone can do it right now.


TheSteveTheSteve - 10/10/2018 1:03:24 PM
+10 Boost
The title's "profitable equal" is grossly misleading, because even Tesla has not been able to make a profit after being around since 2003! That's a decade and a half of mounting losses.

Meanwhile, the German brands are new to the EV field, so you can expect some short-term losses.

The real part of the story that the article misses, is that manufacturers are creating vehicles that are preferable (by consumers) to Tesla. The Nissan Leaf comes to mind. It's a single model with unit sales that rival all of Tesla's models combined, and yet Tesla continues to ply their hype, while others (like Nissan's Leaf) are being quietly successful.

The next few years will surely prove interesting as more and more EVs from various brands debut in showrooms. I speculate the Tesla Hype Machine won't be able to maintain its level of mindshare, and it'll lose the perception of being an industry leader.

The primary reason that Tesla gets a lot of attention is because it's an EV-only company that isn't a startup, and isn't bankrupt.


runninglogan1runninglogan1 - 10/10/2018 3:07:27 PM
0 Boost
The Model 3 will easily outsell the Leaf this year. Globally. At almost twice the price. Even though it's only on sale in the US and Canada. It's true. Look it up.


zliveszlives - 10/11/2018 7:48:44 PM
0 Boost
you wanna bet if the porsche will be profitable?


pdperry23pdperry23 - 10/10/2018 2:41:26 PM
-3 Boost
Love the hater's being proven wrong and scramble to find holes in Tesla's success. Based on your stupid comments in the past, shouldn't Tesla be bankrupt by now and Elon in jail?

Pull your heads out and realize the remarkable achievements Tesla has made as a young company versus the competition. The real story is how difficult will it be for other brands to compete and not whether Tesla will be successful or profitable.

Who else has the demand for EV's like Tesla? Who else has an in-place supercharger infrastructure? Who else has their own battery supply chain? Who else can upgrade and improve their entire fleet with OTA software updates?

The name of the game is sales! And Tesla is dominating right now.


timidatortimidator - 10/10/2018 4:48:28 PM
+3 Boost
On August 1, 2018, Tesla reported a quarterly loss of $717.5 million, compared with a $336.4 million loss in the same period last year. Tesla has had just two profitable quarters in its history, the last of which was reported in 2016. This is the company's seventh consecutive quarterly loss. Both Tesla and Elon Musk were required to pay $20 million to the SEC for Elon's statements on Twitter. Elon Musk was also required to step down from chairman of the board. The name of the game is profit. If you lose a little bit on every car, you will not make it up in the volume of sales. Tesla's intellectual property will aid some other profitable car manufacturer make better hybrids once Tesla fails.


pdperry23pdperry23 - 10/10/2018 4:43:09 PM
-3 Boost
Sure Jones, give me your number. Looking forward to talking to you soon.


HolydudeHolydude - 10/11/2018 1:04:46 AM
+2 Boost
I have no problem with Tesla at all as long as their products are good and reliable, whether they make money is their issue to deal with, as all corporations do.


carloslassitercarloslassiter - 10/11/2018 10:00:51 AM
-2 Boost
Waiting patiently for joneshamilton to post for the 7,000th time that Tesla is "just an economy car".


TruthyTruthy - 10/11/2018 10:43:41 AM
+9 Boost
Tesla is selling expensive technology at a loss. Tesla has no IP that is unique - none. And with tax incentives expiring he losses will mount as sales decrease.
Tesla has substantial debt coming due in November.
The name of the game is not sales. That is easy. The name of the game is sustainable profitability. Tesla is far away from this.


EVisNowEVisNow - 10/11/2018 1:53:47 PM
-7 Boost
You could say the same thing about Porsche with its engine and chassis control engineering and technologies. Yet, not too many people can get close to what Porsche is doing with its gasoline cars.

On the other hand, Porsche is having trouble catching up with Tesla in the EV space. The Taycan is still more than a year from release, and its specs are already beat by the Model 3 Performance available today.


EVisNowEVisNow - 10/11/2018 1:54:52 PM
-5 Boost
re "Tesla has no IP that is unique - none."


zliveszlives - 10/11/2018 7:52:53 PM
+1 Boost
how many laps did the Tesla S do around nurburgring before shutting down?... just don't be surprised when Porsche delivers a Porsche, you can;t compare Porsche to anyone.



SanJoseDriverSanJoseDriver - 10/14/2018 3:02:19 PM
+1 Boost
Who cares... how many people will lap the Nurburgring here? 0.000001% Teslas are fast, handle extremely well, and can sustain high speeds for long periods of time. Going 150+ MPH around a track is an edge case that I would not want to pay extra to support.


TruthyTruthy - 10/11/2018 11:01:02 AM
+6 Boost
With interest rates on the rise, Tesla's debt pile is becoming even more dangerous, which has resulted in investors selling both the company's stock and bonds recently. Tesla stock price has declined 20 percent in last 3 months.


TruthyTruthy - 10/11/2018 3:42:20 PM
+3 Boost
EVisNow, the difference is that Porsche makes more gross profit per vehicle than any other make. They have well-earned reputation for handling and is is a valuable brand.
Tesla on the other hand loses money on every single vehicle, substantial money and it is getting more difficult to see a way to profitability.
They only reason Porsche and others are not rushing to beat Tesla is there is no money in it. They are starting to consider entering, but why do so at a loss.


TruthyTruthy - 10/11/2018 4:13:43 PM
+4 Boost
EVs for the foreseeable future will be a sort of halo car, not a mass market car and not to replace current line-ups. And before you get your sustainable panties


SanJoseDriverSanJoseDriver - 10/19/2018 2:29:27 AM
+1 Boost
So that's why every major manufacturer is planning to replace most if not all of their lineup with EVs over the next 15 years?


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