It can also be argued that:
The market for ~$70,0000 sedans is not so great that increasing volume 10x is reasonable, within 5 years.
The margins for ~$30,000 sedans are lower then 10%.
So, volume may go up 10x, but returns might not.
The market for ~$70,0000 sedans is not so great that increasing volume 10x is reasonable, within 5 years.
The margins for ~$30,000 sedans are lower then 10%.
So, volume may go up 10x, but returns might not.
Of course it is, and it will surprise no one but the eternal bulls.
Tesla has nailed the tech, but auto manufacturing is big and they're new at it (despite how many robots they've bought). You can see the prices at which the other manufacturers are having to subsidize their small EVs and still lose money. Tesla threw out the $35,000 years ago and have stuck with it.
So, it's really no surprise that the price will creep up; the real question is: how big is the market for a $50k EV? Is it as large as people are assuming? Can they make money on 250k cars annually?