Tesla Must Be Protected

[Arthur Hanson]

Tesla is key to competing against the Chinese in the area of high-tech cars. Tesla incorporates numerous high-end sensors, Nvidia chips, Micron memory along with state-of-the-art battery systems. Tesla is a key part of the tech structure of the US and even competes in space with Space X. If the US does not embrace and nurture a crown jewel of the tech world, the entire US economy could be in trouble. Full disclosure, I own no Tesla stock, but TSM and Micron stock who are both suppliers to Tesla. The Chinese are building an auto plant that is 650,000 sq. ft, and they are preparing to dominate this important economic space. The US is no longer immune from the rest of the world and must be able to continue to compete on the world stage.

 

[delong.height]

Well, you can buy Tesla stock or car to show your support. And I believe in most region, they are doing great still. Same statement can be made towards any American company. And it's backfiring Tesla badly since you've got a close association between its brand and Elon.

 

[KevinK]

The US is no longer immune from the rest of the world and must be able to continue to compete on the world stage.

Absolutely agree with the last bit. But when it comes to BEVs, China may have already won the game, without most of the US or EU even noticing it... In 2024 China bought 3x as many BEVs as the US or EU, with no end of growth in sight. And with a internal auto market that is 2x the size of either the US or EU, and with US and EU growth slowing, Chinese makers are hitting a level of scale that gives them huge cost advantages (12K vs 30K for cheapest Tesla) over the rest of the world. Tariffs and protectionism only postpone the inevitable in my books. The best thing we could do is drive US manufacturing and supply chains for Chinese EVs here, under prevailing US labor rates and labor laws. But I'm betting the fossil fuel industry and "big 3" would fight that tooth and nail.

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[delong.height]

And you know what is going wrong with this person. This doesn't sound well to me.

 

[hist78]

Tesla is key to competing against the Chinese in the area of high-tech cars. Tesla incorporates numerous high-end sensors, Nvidia chips, Micron memory along with state-of-the-art battery systems. Tesla is a key part of the tech structure of the US and even competes in space with Space X. If the US does not embrace and nurture a crown jewel of the tech world, the entire US economy could be in trouble. Full disclosure, I own no Tesla stock, but TSM and Micron stock who are both suppliers to Tesla. The Chinese are building an auto plant that is 650,000 sq. ft, and they are preparing to dominate this important economic space. The US is no longer immune from the rest of the world and must be able to continue to compete on the world stage.

First things first, Tesla needs a dedicated full-time CEO.

 

[Jumper]

First things first, Tesla needs a dedicated full-time CEO.

This was always biggest strength and weakness of Tesla. Like it's great if the CEO has big power and is really dedicated but Elon doesn't pay any attention to Tesla and has such a big stake in the company it's practically impossible to oust him.

 

[Xebec]

First things first, Tesla needs a dedicated full-time CEO.

It's interesting as Gwynne Shotwell basically runs SpaceX in her COO position, while Tesla does not appear to have an obvious 'successor' to Musk.

While Tesla does have a COO (+chairman of the board) - Robyn Denholm, it's not clear how much she is running Tesla.

 

[Xebec]

Absolutely agree with the last bit. But when it comes to BEVs, China may have already won the game, without most of the US or EU even noticing it... In 2024 China bought 3x as many BEVs as the US or EU, with no end of growth in sight. And with a internal auto market that is 2x the size of either the US or EU, and with US and EU growth slowing, Chinese makers are hitting a level of scale that gives them huge cost advantages (12K vs 30K for cheapest Tesla) over the rest of the world. Tariffs and protectionism only postpone the inevitable in my books. The best thing we could do is drive US manufacturing and supply chains for Chinese EVs here, under prevailing US labor rates and labor laws. But I'm betting the fossil fuel industry and "big 3" would fight that tooth and nail.

View attachment 2895

The Australian market and some sections of the EU markets are getting taken over by Chinese EVs already - those markets have a lot less automaker protectionism than say Japan, Germany, the USA, or Korea. If the Chinese EVs are going to take over outside of China (and I think they will) - it'll probably be AU and Norway first.

Also FWIW - Toyota was ranked "worst climate lobbying score of any automaker" - https://electrek.co/2024/05/14/toyo...worst-automaker-on-climate-lobbying-globally/

I think Tesla is the only American maker that has a cost structure that can begin to compete with the Chinese EV makers.

 

[KevinK]

I think Tesla is the only American maker that has a cost structure that can begin to compete with the Chinese EV makers.

That’s true, but Musk seems like he’s driven off a mental cliff with the failing CyberTruck, AI and robocar pivot, and massive diversion into politics. Not sure if that is survivable.

 

[Yunus]

It will be hard to save Tesla when it's CEO keeps shooting it foots. Getting involved in politics and leading a huge reform effort can be very polarizing, and will definitely fire-back for a large consumer market like cars. Mixing business and politics is a dangerous game.