Why Tesla can't be the next Amazon or Netflix?

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Meconomy153
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Why Tesla can't be the next Amazon or Netflix?

Post by Meconomy153 » Sun Oct 12, 2014 8:06 pm

Well, there is a clear difference in the business models. Amazon is the big player in retail on-line because of their distribution system and the fact that they provide user reviews of their products. The more they sell, the more value they provide. Likewise, Netflix is popular because of their extensive product offering. If you want to rent a movie, Netflix has the best selection.

Tesla on the other hand has entered a market with a number of bigger players who can shift resources and compete in this particular market segment. While Tesla will benefit from scaling up production, they won’t achieve the same type of leverage that Amazon or Netflix is able to achieve.

Do you remember Netscape? It was the market darling for a time, but then Microsoft decided to produce Internet Explorer and the Netscape bubble soon deflated. Can that happen to Tesla? Can BMW or Ford or Toyota decide to exercise their financial muscle and move into the Tesla market? Of course they can!

Tesla can certainly be a successful car company, like Porsche or Ferrari. However, Tesla is not able to continue to grow it’s market value and become a major player that justifies its current 20 billion market cap. What do you think?

okpatriot
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Re: Why Tesla can't be the next Amazon or Netflix?

Post by okpatriot » Sun Oct 12, 2014 11:32 pm

Don't forget they have the battery manufacturing subset with Panasonic (Gigafactory) in which they can sell their tech to other manufacturers. This could be a big thing for Tesla, and probably bigger than their cars themselves. Really what holds Tesla back is that nobody can afford one of their vehicles, and they are useless for travel due to short range and time to recharge. I could never own one of these cars specifically because of this. Many places I want/need to drive to are 300+ miles away. Until there is infrastructure to support them (charging stations and repair facilities) and they can attain more range on a charge, they will remain a trendy status symbol and nothing more here in the states. If they build one with good range that runs $15-20K new, then they will have a winner on their hands. The other issue is reliability, it seems that many long term reviews from several publications and owners are indicating many problems with the vehicles. But at least they have supposedly fixed the issues with them catching on fire!

The price, reliability, range, and lack of infrastructure support are the reasons why at least for now they cannot be like Amazon etc.. The US is so big and the fact we need vehicles that cover a wide range of uses in one will keep these cars away from the mainstream for a long time.

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Gazzasore
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Re: Why Tesla can't be the next Amazon or Netflix?

Post by Gazzasore » Tue Oct 14, 2014 6:17 am

If they don't do well it will only be due to the other Car makers won't let them
These huge Corporation's like the power and wealth they have
So they will do what ever they have to to maintain Status Quo

They will threaten cheat ever Kill !

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Gazzasore
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Re: Why Tesla can't be the next Amazon or Netflix?

Post by Gazzasore » Tue Oct 14, 2014 6:24 am

I forgot

COLD FUSION has no been done
You won't know about it because mainstream media will not put out real news about things like this

Mainstream Media is OWNED by the people who are threatened
By this Technology

Cold Fusion is safe no radiation
Very cheap
ie a unit to power your home would cost you about $3500 that's a line off payment

It can power Cars Trucks Planes Ships even Space ships

Snail2
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Re: Why Tesla can't be the next Amazon or Netflix?

Post by Snail2 » Tue Oct 14, 2014 11:16 am

They have some growth potential if they can organize a good charger network. At this moment the big issues with electric cars are the lack of quick charging infrastructure and the insane electricity prices at some of the existing charging stations. If they can put down quick chargers in supermarkets and fuel stations for a reasonable price they can win. As electric cars currently mainly used in cities I think this charging station network isn't sci-fi.

okpatriot
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Re: Why Tesla can't be the next Amazon or Netflix?

Post by okpatriot » Tue Oct 14, 2014 3:09 pm

Snail2 wrote:They have some growth potential if they can organize a good charger network. At this moment the big issues with electric cars are the lack of quick charging infrastructure and the insane electricity prices at some of the existing charging stations. If they can put down quick chargers in supermarkets and fuel stations for a reasonable price they can win. As electric cars currently mainly used in cities I think this charging station network isn't sci-fi.
Agreed, but they still will need to get the price down on the vehicles though. My state's average household income is about $35k/yr, and most of the US is around this level of income per household... It's mainly on the East and West coast that a good portion of the people make any serious money and can afford to buy a Tesla. Until the prices are in a range that someone can afford, only doctors/lawyers/bankers/ceo's will be able to buy them and they are a very small portion of the population. Event though you don't have to buy gas and the Tesla *may* pay itself off due to that (if you don't need to pay a ton for battery replacements and repair), you still have to come up with the money to buy it... And that is a pipe dream for a $35k/yr household. Most familes don't spend more than 10k for a car unless it's new and then $15-20k on a horrible 7yr loan is usually about the most someone can afford.

I really think Gigafactory is where the money will be at for Tesla. It's not about the big automakers not "letting" Tesla be successful.. It's about cost to produce which effects overall price of the vehicle. Companies like VW/Toyota/Honda etc... have the ability and infrastructure in place to mass produce vehicles with far less overhead. If they want to build an EV, they would likely buy their batteries from Gigafactory. Unless Tesla can produce vehicles as efficiently as the big guys, their cars will never have a price tag that will give them any serious market growth.

Snail2
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Re: Why Tesla can't be the next Amazon or Netflix?

Post by Snail2 » Tue Oct 14, 2014 10:22 pm

okpatriot wrote: Agreed, but they still will need to get the price down on the vehicles though. My state's average household income is about $35k/yr, and most of the US is around this level of income per household... It's mainly on the East and West coast that a good portion of the people make any serious money and can afford to buy a Tesla. Until the prices are in a range that someone can afford, only doctors/lawyers/bankers/ceo's will be able to buy them and they are a very small portion of the population. Event though you don't have to buy gas and the Tesla *may* pay itself off due to that (if you don't need to pay a ton for battery replacements and repair), you still have to come up with the money to buy it... And that is a pipe dream for a $35k/yr household. Most familes don't spend more than 10k for a car unless it's new and then $15-20k on a horrible 7yr loan is usually about the most someone can afford.

I really think Gigafactory is where the money will be at for Tesla. It's not about the big automakers not "letting" Tesla be successful.. It's about cost to produce which effects overall price of the vehicle. Companies like VW/Toyota/Honda etc... have the ability and infrastructure in place to mass produce vehicles with far less overhead. If they want to build an EV, they would likely buy their batteries from Gigafactory. Unless Tesla can produce vehicles as efficiently as the big guys, their cars will never have a price tag that will give them any serious market growth.
True. Without some more affordable models they will remain a niche player and sooner or later will be absorbed by the big fish.

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