joseph7h
Member
Just one observation from Tesla's Autopilot PR crisis:
In the past, I always consider Tesla as the Apple in autos which will keep 30+% of the benefits/profits in the value chain. Now it seems the reality is just the opposite as suppliers (say MBLY) seem in a better position: when there's an accident, it's Tesla's issue/failure, not MBLY's; when everything goes well, MBLY get their fair portion.
How long can this go before Tesla leverage its end customer facing advantage (by squeezing profit margin of the suppliers) and take biggest chunk of the profits?
In the past, I always consider Tesla as the Apple in autos which will keep 30+% of the benefits/profits in the value chain. Now it seems the reality is just the opposite as suppliers (say MBLY) seem in a better position: when there's an accident, it's Tesla's issue/failure, not MBLY's; when everything goes well, MBLY get their fair portion.
How long can this go before Tesla leverage its end customer facing advantage (by squeezing profit margin of the suppliers) and take biggest chunk of the profits?