Only 5% of next car purchasers expect to buy all electric cars-Road and Track.

[UnionStrong]

Well Mr. Literacy you surely know that finding silver in significant deposits has become extremely difficult in spite of a high demand for it already? That most silver produced today is a byproduct of mining other minerals? And that there's a housing shortage with copper already in high demand and only so many productive copper mines out there? Industry leaders have been saying for some time there's simply no way to produce enough of those metals to meet the demand that switching new cars to electric will bring. But they haven't met you yet so they don't know that higher prices will spur them on to produce more. Thank the good Lord you're here to tell them.

Wilbur is always right!

 

[wilberforce15]

He’s always right…..Lol

Yes, if there is a shortage, all that means is that Tesla will get all of it.

 

[vantexan]

And however difficult it is to find, it will go to the highest bidder with the biggest order, and that's Tesla. Everybody else will be screwed.

Shortages help Tesla, not hurt it.

Hmmm, bet the housing market would disagree on copper. Bet the electronics and solar industries would disagree on silver.

 

[wilberforce15]

Hmmm, bet the housing market would disagree on copper. Bet the electronics and solar industries would disagree on silver.

They can disagree, but none of them have the profit margins Tesla has, which means that Tesla will be willing to pay more of a premium.

 

[wilberforce15]

Tesla's gross margin per car is 33%.
They can bid anything they want.
Houses and electronics manufacturers don't make that kind of margin.

 

[UnionStrong]

And however difficult it is to find, it will go to the highest bidder with the biggest order, and that's Tesla. Everybody else will be screwed.

Shortages help Tesla, not hurt it.

 

[wilberforce15]

View attachment 382323

Yes, shortages yield high prices, meaning those with the highest margins and deepest pockets get the remaining goods.

That's Tesla.

 

[vantexan]

They can disagree, but none of them have the profit margins Tesla has, which means that Tesla will be willing to pay more of a premium.

You seem to forget that Tesla is one player in a world of players. Think Tesla "will get it all" when the world's biggest manufacturing center is in China and the Chinese government will buy collectively on their behalf? Please say you don't think that otherwise you're delusional.

 

[wilberforce15]

You seem to forget that Tesla is one player in a world of players. Think Tesla "will get it all" when the world's biggest manufacturing center is in China and the Chinese government will buy collectively on their behalf? Please say you don't think that otherwise you're delusional.

Tesla doesn't need it all. But Tesla will get all that it wants, yes.
Tesla is a Chinese company, effectively, and has gotten the most favoritism from China of anybody. The CCP is cool with Tesla.

GigaShanghai made half a million cars last year.

 

[wilberforce15]

It's fun to watch you guys learn things.
Did you know half of Tesla's production was underwritten with favoritism from the CCP?

No, you did not.

 

[wilberforce15]

A bold faced lie.

How would lowering the price sell more vehicles?

They sell everything they make. They can't make any more. They have nothing more to sell. There are no unsold Teslas that a lower price would get sold.

 

[vantexan]

Tesla's gross margin per car is 33%.
They can bid anything they want.
Houses and electronics manufacturers don't make that kind of margin.

Except it doesn't work that way. Producers and end users buy and sell futures contracts. Acme Inc can lock in X amount of a given commodity at a given price. Tesla won't be able to hog the market but the increased demand for that commodity brought on by Tesla and other EV producers as well as all the traditional users will surely increase prices that will cut into Tesla's profit margin. And if there's simply not enough of a given needed commodity then Tesla will have to settle for producing fewer cars. Between less available cars and lower profit margins they'll have to keep their prices high. No cheap EV's for most Americans who can't afford them anyways according to you.

 

[vantexan]

Tesla doesn't need it all. But Tesla will get all that it wants, yes.
Tesla is a Chinese company, effectively, and has gotten the most favoritism from China of anybody. The CCP is cool with Tesla.

GigaShanghai made half a million cars last year.

It's fun realizing how much you don't know but assume. Tesla won't get all it wants because there's simply not enough of those commodities.

 

[wilberforce15]

Except it doesn't work that way. Producers and end users buy and sell futures contracts. Acme Inc can lock in X amount of a given commodity at a given price. Tesla won't be able to hog the market but the increased demand for that commodity brought on by Tesla and other EV producers as well as all the traditional users will surely increase prices that will cut into Tesla's profit margin. And if there's simply not enough of a given needed commodity then Tesla will have to settle for producing fewer cars. Between less available cars and lower profit margins they'll have to keep their prices high. No cheap EV's for most Americans who can't afford them anyways according to you.

Tesla can lock in more than anybody, with any premium they want, and is a larger player than any other auto manufacturer.
Will it cut into Tesla's margin? Sure. But who cares? It kills the competition, which ultimately helps Tesla.

And, as I've already shown, Tesla can keep prices high and still 10x the production and sell all of them at the premium price. Even if they lose their margins.
Whatever is hard hurts everybody else way more than it hurts them. Tesla has cash and scale. Nobody else does.

 

[wilberforce15]

It's fun realizing how much you don't know but assume. Tesla won't get all it wants because there's simply not enough of those commodities.

You just said the CCP would hog it all.
Tesla is the CCP.

 

[UnionStrong]

Yes, shortages yield high prices, meaning those with the highest margins and deepest pockets get the remaining goods.

That's Tesla.

And the energy grid will magically expand too.

 

[Thebrownblob]

You just said the CCP would hog it all.
Tesla is the CCP.

That should make you proud!

 

[wilberforce15]

And the energy grid will magically expand too.

Everybody wants to change subjects when one isn't going well.
Even if EV's are half of production in 2030, they'll still only be 15% or so of cars on the road. It's really not that big of a deal, and there is a lot of time.

 

[wilberforce15]

That should make you proud!

No, I think Tesla is largely a force for bad in the world.

 

[Thebrownblob]

No, I think Tesla is largely a force for bad in the world.

Talking to you is like talking to my crazy ex-girlfriend, like talking in circles.