Comments by "Engineering the weird guy" (@engineeringtheweirdguy2103) on "The Electric Viking"
channel.
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True but also not true. The customer wants an EV. They don’t want THEYRE EV’s. Simply because they aren’t competitive. Tesla has been making EV’s for the last 10 years. They also have a drastically different business model which has allowed them to have the highest profit margin on any car sold on the market today. So they can and have been cutting prices to stay competitive. The way they’ve manage that is they build their own car from the ground up. And the support network with it. Like the Tesla super charger network.
That means every part in a Tesla is made by Tesla for Tesla. The programming, infotainment system, sound system. Motors. Seats, interior. Etc. Legacy automakers outsource that. They get someone else to design the infotainment system, and someone else to program it, someone else to build the engine, and someone else to design the interior and someone else to make the seats. They just assemble it. What that means is a lot of middle men taking a cut.
Couple that with the fact that legacy automakers not only aren’t set up to make EV’s and don’t have the 10 years experience of making and perfecting EV’s, means not only do they produce a product that can’t compete with Tesla’s they’re also needing to charge more for it. So you pay a lot more to get a lot less. Not only that but legacy automakers sell exclusively through dealerships which charge a markup on the cars to make bank. Tesla sells direct toy the customer.
So naturally consumers don’t want to pay a heap more to get a lot less. Where good EV’s have been dropped at a good price point, consumers have jumped on it. That’s why the Tesla model Y is the best selling new car globally in 2023.
Which is why cars like Mercedes EV offering, the EQ, isn’t selling. Because even if the EQ was at the same price point of a similar sized tesla, it wouldn’t be competitive. It would have the range, performance, software advancements or charging infrastructure and network that the tesla has. But Mercedes is asking for an extra $150k for it. Plus another $12k for the dealer. And then wonder why it isn’t selling?
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