> I don't quite understand the strategy of sitting and waiting on a technology competitive advantage.
1. Utilizing current facilities, thereby being able to spread out the fixed cost of building a manufacturing plant over more units.
2. Related to 1, waiting until building new facilities is necessary to be competitive in order to be able to use the most up-to-date battery design as well as most up-to-date facilities design.
3. Keep the design a secret as long as possible. I’m not sure if its possible to keep battery tech a secret, but if there is no functioning version, then it can’t be reverse engineered.
> Their 'premium' cars are actually about on par with Korean and Japanese mid-tier vehicles in terms of quality at best, by every objective measure. But their pricing is luxury level simply due to the cost of batteries.
1. Utilizing current facilities, thereby being able to spread out the fixed cost of building a manufacturing plant over more units.
2. Related to 1, waiting until building new facilities is necessary to be competitive in order to be able to use the most up-to-date battery design as well as most up-to-date facilities design.
3. Keep the design a secret as long as possible. I’m not sure if its possible to keep battery tech a secret, but if there is no functioning version, then it can’t be reverse engineered.
> Their 'premium' cars are actually about on par with Korean and Japanese mid-tier vehicles in terms of quality at best, by every objective measure. But their pricing is luxury level simply due to the cost of batteries.
Totally agree.