Schnitz
Member
Tesla margins should always be higher than legacy OEMs simply due to business model differences. Legacy OEMs typically see 5% total margin and dealers see 5-10% total margin. Tesla operates as both so their ability to stack these margins seems to be a competitive advantage. Also, the way Tesla is playing in adjacent markets like charging stations, solar, robots, and other experiments will ensure they will always be different.
Good for them.
What is stopping the legacy guys from changing their business models? Any company that has been around as long as they have (Ford est. 1901) is because of their ability to do just that. Japanese manufacturers of all types have proven time & again that while they may not be the greatest innovators they are the best at making everything they touch better. To say "they will always be different" doesn't take into account the fact that Tesla was garbage from their inception to 2010 and only became profitable in 2020. Tesla is not the be all and end all of the automotive industry. They are pioneers in terms of EV production but that's it.