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Originally Posted by ozpacman
Regardless of whether one loves or loathes dear old John, he does make some interesting points.
I recall seeing something in the media last year regarding the Rio Tinto manager stating that the ability to supply lithium through its mining operations could not hope to match the projected demand for the product from EV manufacturers. So he's not making that up.
We also seem to be seeing a pullback from several other vehicle manufacturers regarding their EV production targets, and Toyota seemingly reluctant to commit to the EV as being the future of motoring as they see it.
Tesla supposedly discounting by up to 20% and citing reductions in supply chain costs as enabling this to occur is also interesting, in that they must be one of few companies in the world who have managed to find cheaper material or component prices. Everyone else seems to be having to pay more. Heavy discounting usually spells a bit of corporate nervousness, but who knows in this crazy modern world!
I find it all a bit perplexing - but then again, the level of my lack of intelligence has been pointed out to me previously so I'm probably completely on the wrong track.  |
Tesla also had incredibly high profit margins which once initial capital and R&D build costs for plant setup were amortised left a lot of fat for price reductions. As production & supply efficiencies improved build volume increases cover profit margin decreases.