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TeslaIntroducedABusinessModelTheWorldHasNotSeenBefore
You can save tens or hundreds of thousands of dollars withcontinuous improvements to a Tesla, which is a stark contrast to otherautomaker that do something else continuously: ask you to pay again!
One of the major reasons why Tesla is winning against itscompetition hands down is completely overlooked, underrated, and rarelymentioned. It is the value creation for customers. Other manufacturers have noanswer for.
Tesla adds value for its customers like no other company in theworld. I am not talking about safety features, being fun to drive, orsustainable transportation soft values, but about hard dollars in theirpockets. This has nothing to do with autonomous driving or robotaxis, which, ifthey arrive one day, will add 6-digit value appreciation on top.
What we are experiencing today is not a competition about who hasthe fully electric vehicle (BEV) with the best specifications, the longestrange, the best efficiency, or the ability to charge the fastest. What we areexperiencing is not a competition between BEV and gas/diesel powertrains, butthe competition between two contradicting business models. When Tesla startedits operations, Elon Musk chose a unique business approach compared to allother automakers, and it makes all the difference.
That difference is expressed in today’s high market cap of Tesla[TSLA] despite still low vehicle delivery volumes. The incremental value Teslacreates per vehicle for its customers is higher compared to any othercompetitor, and that is critically important for a successful business. Ifcustomers get a better deal financially, why should they ever buy again fromthe competition?! The business case Tesla offers to its customers is worth sometens of thousands or up to hundreds of thousands of dollars per car over 10years, and no one can compete with that.
Tesla is the only automaker worldwide that continuously improvesthe vehicles it has sold, and for free. Compare this to all other com
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