Legacy auto doesn't have a chanceLegacy auto dealers make about $6,000 per car (see the video that I posted). Tesla dealers = $0
Legacy auto makers spend about $1,000 per car on advertising. Telsa spends $0
The US federal government provides $0 rebate to legacy auto while Tesla's get a $7,500 rebate
The US feds provide Tesla with about a $3,500 grant for making batteries in the USA
California, the 5th largest car market in the world offers up to $7,500 in rebates while many states are now offering a $5,000 rebate. Only Alabama, Arkansas, Hawaii, Idaho, Kentucky, Montana, and North Dakota (all small populations) DON'T offer rebates.
Let's do the math on the difference between the real cost of a Tesla vs an ICE vehicle:
ICE Dealership profits..................$6,000
ICE Advertising............................$1,000
US consumer grant......................$7,500
US battery rebate.........................$3,500
State rebate.................................$5,000
The sum of the above is $23,000
Add in another $1,000 in savings for operating costs per year over ten years and you have a difference of $33,000 per vehicle over the life of the vehicle.
Note that I haven't attached a value to the fact that Tesla leads the world in safety and customer satisfaction.
These days, Tesla is selling the M3 in the USA for about $37,000 if you buy the car out of inventory.
Who do you think is going to win? Most of the readers here think I'm (fill in the blank with nuts/stupid/an idiot) but when it comes time to buy your next CAR, will you really buy an ICE vehicle knowing the math?
When it comes to TRUCKS, the math gets worse for legacy. When Tesla starts selling the Cyber Truck in a few months for less than Ford and GM and Stellantis trucks, what will happen to legacy truck sales?
Cyber Trucks will: sell for less, customers will receive the Federal and State rebates, be low cost to operate as they are virtually zero maintenance, have 500km range in a world where chargers are springing up like weeks, have an oversized bed, have a frunk for locked storage, a body that won't rust, glass that won't break, include a built-in roll away cover for the bed, built-in ramp for loading, climate control for overnight camping etc etc etc, and have a battery pack built to last one million miles.
I understand that 30% of truck customers think the Cyber Truck is ugly. However, the CT has 1.9 million pre-orders and the number is growing. No other vehicle has ever had pre-orders of more than 400k so somebody likes them.
The younger generation of buyers will be all over the CT which is basically a computer on wheels that offers so much more than a simple work truck. I can see a new industry developing of weekend campers using the CT as a comfortable and safe and free getaway. How much appeal would a CT have as a weekend camping holiday? Drive to a lake or forest, set up in minutes, enjoy nature, then watch a movie and go to sleep in a safe (elevated) climate controlled camper. And then back to the job site on Monday, or just drive around in the coolest vehicle on the road for the week.
Unlike the non-descript M3's and MY's, when the CT's start appearing on the roads, they will be rolling billboards for Tesla that nobody can ignore.
I know most of you think I'm (fill in the blank: nuts/stupid/an idiot), but the transformation of the transportation industry is happening whether you like it or not. You can be on the fun side or the painful side, it's your choice.