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by rdl
4796 days ago
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Most of the people who can afford 100k cars (and/or who would be willing to buy 100k cars) live in SF, LA, NY, Boston, DC, etc. now. A better argument is that the total number of cars sold in those markets is like 1-2mm out of the 10mm US market, but even if Tesla just becomes Audi, that's pretty successful. Another thing about high cost of living in places like that is maybe you're willing to spend 10% as much on a car as on a house. In Palo Alto that means you can buy two new loaded Teslas to go with your 2BR/1BA cottage; in the midwest, one used Toyota to go with a 4BR/3BA house on 5 acres. (and Elon Musk's counterargument to all of this is that he's working on a 30-50k car next. I'm sure he'll deliver. The segment they're neglecting is the truck/commercial market -- there probably is an opportunity for someone (Textron? they make the new EV UPS/Fedex trucks) to make an awesome commercial EV platform, maybe with a CNG or LNG generator onboard. Whoever replaces with pickup truck and light commercial truck will have a next-Ford sized business, too) http://www.npr.org/2012/04/02/149703488/oil-scare-turns-fede... is interesting |
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