There is always a market for quality and Tesla will do fine as long as they 
build the best product on the Market.




________________________________
 From: tomw via EV <ev@lists.evdl.org>
To: ev@lists.evdl.org 
Sent: Monday, April 6, 2015 10:10 AM
Subject: Re: [EVDL] The Tesla Factor: Elon Musk Will Force Auto Industry To 
Roll Out Self-Driving Cars Sooner Than You Think - Forbes
 

I think the article is rubbish.  As far as seeing that Tesla was addressing a
small market with the S...well duh, but they have ameliorated that effect
somewhat by selling globally. No other company is pushing a product
competitive with the S yet, but it looks like that may change in a year or
two.  I think Tesla's survival depends on their ability to lower costs and
develop competitive products in a wider market, which means lower priced
products. That largely means competing with the existing car manufacturers
on their own turf, tough going.  Or, they just shrink and become a supplier
of niche vehicles in the future, not what Elon has in mind with the
gigafactory.

One factor the article doesn't mention is psychological, how well accepted
that new technology will be by the majority of Americans.  I'm guessing it
will be a niche market too, mainly the tech savvy, and will take quite a few
years to become more widely accepted, so best for Tesla's success not to
hinge on that.  Don't know if this is the actual case, but I think it would
be easy for the management at Tesla to develop group think, forgetting that
most U.S. citizens don't live in silicon valley and work in high tech, and
overestimating the appeal and acceptance of such features as self-driving as
a result. Know your market.

The vehicle market is shrinking with the increasing polarization of wealth
in the U.S..  Many cannot afford to purchase a new vehicle, so maybe you
mainly have to target those in the upper quintile or so income bracket. 
There will be a furious fight for market share in that smaller market in the
future.



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