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Musk's goal all along was to get away from boutique production. He wants to sell millions of cheaper cars, not thousands of cars for wealthy people.

Not sure it's going to work out. Without some big jumps in battery tech, EVs are going to be difficult to sell without subsidies.





Musk would love to be selling several billion dollars per year of model S/X sales, the issue is they aren’t that competitive with other cars in the luxury segment thus the falling sales numbers.

Tesla’s doesn’t really have a complex strategy at this point, they are getting squeezed out of the high end by legacy automakers where their lower cost batteries don’t matter as much. They are absolutely fucked on the low end as soon as Chinese cars enter the picture.

So self driving is really the only option to sell any long term upside to keep the stock from tanking. It’s not a very convincing argument, but you play the hand your dealt.


> getting squeezed out of the high end by legacy automakers where their lower cost batteries don’t matter as much. They are absolutely fucked on the low end as soon as Chinese cars enter the picture.

The deep irony here is that after ~15 years of trying ti differentiate from the legacy American automakers, they land in a very similar competitive position. Chinese EVs are in the process of running the table outside the protectionist markets of the EU + US/Canada.

Eventually those protective barriers will fall as they protect a relatively small number of citizens by taxing the majority. It remains to be seen whether the US and European domestic producers will survive.


You may have to play the hand you have, but Musk was the dealer and he is still losing.

What's their competition on the high end? Porsche, Cadillac? Do Rivian or Genesis count?

If they are eating into model X or S sales it obviously counts here.

Porsche, Audi, BMW, Mercedes-Benz, Genesis, and Cadillac are all competitive in different ways. Stat wise someone buying the electric G-Wagon is making a poor decision, but swagger is a selling point which very much costs Tesla sales.

Cadillac’s approach of a huge dumb battery powering a huge heavy vehicle may not be ideal for the average use case, but customers are going to prioritize different things. One SUV just can’t be the best solution to every lifestyle.


Audi and Mercedes? (Well in Europe where the highend Teslas barely had any sales anywya, at least). Porsche is probably a tier or so above

Lucid runs circles around the S when it comes to build quality and features.

They're very cool in theory. My impression from the EngineeringExplained guy's experience isn't great. And Lucid does something similar to Tesla where too much (IMO) is controlled through the touchscreen.

A significant fraction of his issues were both him and his wife using their phones as key’s. He obviously it should still work, but it’s something of an edge case.

What about sales, though?

They outsold the model S last year which was their primary competition.

They successfully launched their second model, the gravity, which would have competed with the X but will now likely just outright replace it.

Their mass produced $50k SUV is expected to launch this year.


> Without some big jumps in battery tech, EVs are going to be difficult to sell without subsidies.

The actual sales figures show otherwise, but sure, there's still a lot of uncertainty with regards to batteries / range, I can imagine even moreso in the US. Traveled to Austria a while ago in an EV (~1000 kilometers), we had to stop 3x on the way, but the battery was good for another 2.5 hours of driving after a coffee. I keep hearing that "solid state batteries are around the corner" and they will solve all problems with capacity and safety / fire risk, apparently. I'll just sit and wait patiently, it'll take years before their production capacity is on par with current battery tech.


The whole battery thing is a massive misunderstanding of how EVs work vs gas vehicles.

For an EV with a range of 250 miles (400km) you can drive 400mi (645km) with one (1) thirty minute stop.

That's pretty much, drive 3 hours, stop for 30 minute lunch, drive 3 hours.

The confusion stems from the fact that gas cars don't fill up themselves before you depart, and they don't fill up themselves when you arrive. There are rather large differences between gas and electric cars, but people still treat EVs like gas cars, and demand EVs be more like gas cars.


Isn't it more like 4 hours?

The EPA tests at 55MPH, and driving faster than that will yield a lower range, so each 200 mile leg should take closer to 4 hours.


I factored that in since a 250 mile EV is sold as usually around 300-320mi

You’re still giving the EV more range than it would have. You’re not supposed to drop below 20% or charge above 80% so following that an EV with 300 miles total range would only have 180 while in a gas car you can comfortably nearly empty the tank without issue.

And yet Chinese EV's are flying out of their factories, well, a few are - most are self driving out to the shipping yards.

This despite the 2025 support by the Chinese state for the Chines EV industry now being almost nothing.

  By contrast, defenders of China could point out that the data show that subsidies as a percentage of total sales have declined substantially, from over 40% in the early years to only 11.5% in 2023, which reflects a pattern in line with heavier support for infant industries, then a gradual reduction as they mature.

    In addition, they could note that the average support per vehicle has fallen from $13,860 in 2018 to just under $4,600 in 2023, which is less than the $7,500 credit that goes to buyers of qualifying vehicles as part of the U.S.’s Inflation Reduction Act.
Old source: https://www.csis.org/blogs/trustee-china-hand/chinese-ev-dil...

but the arc of less subsidies is clear.


You should also factor in lax human rights enforcement in China (which acts like a subsidy essentially in effect and is not factored in these calculations):

https://www.amnesty.org/en/latest/news/2024/10/human-rights-...

BYD is at the bottom of the list (worst for human rights). Tesla is second at the top (better for human rights).


> You should also factor in ...

Thank you for the suggestion.

I should point out that is not my work, and dates from 2023. If you follow the link to the work quoted you might be able to contact the authors and pass them your thoughts.


You are citing a source to tell a story about subsidies.

Lack of worker safety standards can be considered to be a government subsidy when doing a comparison.

Therefore, it's reasonable to point out that it should be factored in.


Absolutely. Even better, suggest that the authors factor that in to their presentation.

Now, I'm not going to tell you what _you_ should do, nor would I even tell you what I think you should do.

I'll leave that to @thesmtsolver2 and others who enjoy that type of thing.


This is a retarded list of self reported paper commitments, not actual practice, i.e. no actual supply chain assessment was done, not that you can trust a propaganda shitrag like amnesty. Tesla simply "promises" in their PR to be better for human rights. Hint 50%+ of Tesla exports come from Tesla Shanghai which uses same supply raw material supply chain as rest of PRC auto, functionally they're the same.

Meanwhile how do you factoring in PRC manufacturing is simply more modern with more labour saving automation, i.e. they simply have less people to "abuse". PRC simply be peak human rights by eliminating the most humans from process.


You'd expect subsidies to drop as supply chains mature and economies of scale kick in. What about subsidies to inputs like electricity, aluminum, batteries, etc?

You would be better answered by reading the link and any methodology references.

Perhaps "support" already factors in all relevant subsidies.


> He wants to sell millions of cheaper cars, not thousands of cars for wealthy people.

Why hasn't the cheap car been designed yet then?


The Model 3 is pretty cheap for an EV. The average car in the US is over $50k now, so it's competitive on price.

If $50k is competitive for you, that should be a sign something's gone wrong.

In Europe we can get new cars for less than half that price, both for domestic production and also post-tariffs on Chinese imports.


> If $50k is competitive for you, that should be a sign something's gone wrong.

Or, on the contrary, a sign that something went right. If Europeans weren't drowning in poverty, they would also buy more expensive cars.


> Europeans weren't drowning in poverty

How come the US has a higher rate of struggling with groceries (12.2% US vs 8.5% EU), healthcare (44% US vs. 18.6% for costs) EU, education costs, etc.?

> they would also buy more expensive cars.

Price != quality. European cars have better safety standards, as well as being cheaper to own and run. American cars… the vibe I got from them on trips was the expectation for them to serve as an additional air-conditioned entertainment room that just happened to be on wheels, whereas the European ones are mostly a mode of transport unless you're specifically into luxury brands.


> How come the US has a higher rate of struggling with groceries (12.2% US vs 8.5% EU), healthcare (44% US vs. 18.6% for costs) EU, education costs, etc.?

Reliability of statistical data. The more totalitarian a state is, the more out of touch with reality it can be in its statistics. If we look at the statistics provided by North Korea, they have zero on all the points mentioned. Europe isn't there yet, but it's moving at full speed. Their cars even safer and cheaper to own and run than European ones.


> The more totalitarian a state is, the more out of touch with reality it can be in its statistics.

That's more of an American problem than an EU one at the moment.

We're not the ones shooting unarmed protesters in the head ten times after removing their legally owned gun, nor faking arrest photos, etc.

Even before that, our leaders have not* called for the death penalty to be used against politicians reminding troops of their existing obligations to not follow illegal orders.

Even before that, the US government shutdown at end of last year means some economic data was never collected at all.

Even before that, DOGE having Musk at the helm had obvious conflicts of interest with regards to e.g. ongoing investigations against Tesla.

* to my knowledge, but TBH wouldn't be surprised if Orban has, but also Hungary is to the EU as, IDK Wyoming perhaps, is to the USA.


> We're not the ones shooting unarmed protesters in the head ten times after removing their legally owned gun, nor faking arrest photos, etc.

To be fair, can you even "open carry" a firearm anywhere in Europe? Isn't the UK trying to ban pointy kitchen knives[1]?

[1] https://www.msn.com/en-us/crime/general/uk-considering-point...


I believe kitchen knives, without good reason (being a chef is a good reason, have just bought it ditto), are already banned in public in UK.

Still, UK does have a firearms licensing process; I doubt anyone at any protest would be allowed one, but the response of UK police only escalates to "pin to ground then shoot in head" when they've mistaken you for a suicide bomber wearing an explosive vest and expect you to blow yourself up in a crowded subway train (which has happened! I don't excuse this! But this is still less stupid than claiming someone is armed after removing their weapon).


With the appropriate permit, yes. Which is also the case in Minnesota.

(The permit requirements differ a lot between countries, but that an implementation detail, you should not be killed while respecting the law)


This is all terrible. But how does this change the fact that Europe has a more totalitarian government, committing more political assassinations and persecuting political opponents, while Europe is mired in poverty?

I mean, compare the median wages of factory workers in Europe and in the US and the amount of taxes they pay to support gangs of alien rapists.


Do you mean Russia?

Because while Russia is indeed within the continent of Europe, counting it in this context is about as sensible as calling Venezuela and El Salvador "American" just because of the continent they happen to be part of.

If you didn't mean Russia, I have no idea what fiction you're reading.

Not that any of this justifies American cars being overpriced, having no real low-end options. You're way more car-centric than we are, lots of you need cars, whereas many more of us are fine without any, so you having no cheap (new) options is more surprising.


Ah, you’re talking about the regime that fired the commissioner of the Bureau of Labour Statistics because the president didn’t like the figures, right?

Right?


Scary to realize how some people in the US have been brainwashed into thinking European countries are totalitarian states drowning in poverty

Just be rich (in debt) like Americans seems like a bad plan for a global brand. Poorer countries outside NA and the EU buy stuff too, y'know.

If you're implying the US car market is hamstrung by manufacturer collusion, stupid regulations, and a legal environment that caters to dealers at the expense of customers, then... I agree.

If his goal was to sell millions of cars he would have developed something beyond Model 3 and Y. But he canceled the next generation programs.

> Musk's goal all along was to get away from boutique production. He wants to sell millions of cheaper cars, not thousands of cars for wealthy people.

So the literal opposite of the Cybertruck, which was released less than a year ago.


According to the Wikipedia article the first one rolled off the line in November 2023. That’s a good two years.

Not to mention the Roadster

The non-existing vehicle Musk still was able to get suckers to pay him for



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