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I think he's right on the right track... Posted by Snowmobile [Email]  (#686)  [Profile/Gallery]
(more from Snowmobile) on Tue, 28 Oct 2014 17:48:52
In Reply to: Re: Still a very small, niche player, HudsonValleySaabGuy, Mon, 27 Oct 2014 17:51:18 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Being successful in business is about finding the right balance of margin and volume. Elon is using the exact same model as most high tech: start high end and high margin to work with wealthy folk willing to be early adopters (the roadster). Then go a little more mainstream in price, product, and volume (the S). Then go a little more mainstream in price, product, and volume (that would be the X). You see this with computers, TV's, cell phones, telecom equipment (even tech in cars, eg air bags, automated parallel parking, etc etc)... it is very hard to grow a company by opening the doors and churning out a gazillion cheap "whatevers" when there are unknowns in the tech involved. Much easier to manage the tech release in smaller numbers, and someone's gotta pay for the R+D. Eventually that gets spread over volume, but usually that's not feasible immediately... It's not philanthropy, it's business. I'm ok with not being able to afford some item that is cool - I can wait for it to trickle down. Very hard for a new company to compete with Toyota, especially with a product that is much more sophisticated and specialized also! The prius is a lot more accessible to the consumer due to the gas engine in it. Tesla in part is testing out the range anxiety aspect!
Anyway, that is my take on it. I'm keen to see what this X looks like, though I think it will be smaller and I like the basic concept/package of the S.
->Posting last edited on Tue, 28 Oct 2014 17:50:47.
, Fri, 24 Oct 2014 16:59:23, Tue, 28 Oct 2014 17:48:52 <-- Viewing This Message, Sun, 26 Oct 2014 04:02:56, Mon, 27 Oct 2014 08:03:27, Mon, 27 Oct 2014 05:15:19
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