I hope Tesla can weather this... competition is good.

[RonTCat]

https://www.cnn.com/2021/01/31/investing/tesla-profitability/index.html

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[jhalkias]

I think Tesla will survive . . . but I don't think its stock will or can continue at the current valuation.

 

[dbsb3233]

https://www.cnn.com/2021/01/31/investing/tesla-profitability/index.html

I still shake my head at how some companies are forced to subsidize others like this.

But as long as govt doesn't move the goalposts, the practice should be diminishing significantly this year for many automakers, greatly reducing Tesla's govt-imposed subsidy revenue. Forcing them to figure out how to actually make a profit from their products if they plan to survive.

 

[silverelan]

I still shake my head at how some companies are forced to subsidize others like this.

But as long as govt doesn't move the goalposts, the practice should be diminishing significantly this year for many automakers, greatly reducing Tesla's govt-imposed subsidy revenue. Forcing them to figure out how to actually make a profit from their products if they plan to survive.

FCA (now Stellantis) basically financed Tesla's new factory in Europe. Pretty astounding if you ask me. You're right that the emissions credit scheme will diminish significantly very soon, leaving Tesla to figure out how to make money like everybody else.

 

[dbsb3233]

FCA (now Stellantis) basically financed Tesla's new factory in Europe. Pretty astounding if you ask me. You're right that the emissions credit scheme will diminish significantly very soon, leaving Tesla to figure out how to make money like everybody else.

Yep. *IF* governments don't move the goalposts. Which I'm afraid some will do.

 

[ab13]

FCA (now Stellantis) basically financed Tesla's new factory in Europe. Pretty astounding if you ask me. You're right that the emissions credit scheme will diminish significantly very soon, leaving Tesla to figure out how to make money like everybody else.

FCA should have done what others are doing now, deeply discounting plugin cars so the public can buy them rather than pay to get credits. BMW, Nissan, Chevy, Honda, etc... have been offering huge discounts at various times to move some models of their plug-in vehicles. They get credits and the consumer gets big discounts.

 

[RonTCat]

FCA should have done what others are doing now, deeply discounting plugin cars so the public can buy them rather than pay to get credits. BMW, Nissan, Chevy, Honda, etc... have been offering huge discounts at various times to move some models of their plug-in vehicles. They get credits and the consumer gets big discounts.

FCA is light years behind developing HEV and BEV vehicles. It is far cheaper to buy credits then pour what will be 10s of $billions into this market to catch up.

FCA-Tesla is a match made in heaven. FCA sells RAM/Jeep trucks for big $$$, but has a huge CO2 problem, so it gives some of that $$$ to Tesla to get by. Tesla needs $$$ to survive, and FCA is a free money source. Win-win.

 

[pt19713]

People forget how much they've spent and still are still spending on factories. In 2020 Shanghai, Austin and Berlin. As the company continues to grow and expand, profits will be handicapped. Tesla still needs to improve quality. All the post-delivery issues / warranty claims can't be cheap.

 

[timbop]

FCA is light years behind developing HEV and BEV vehicles. It is far cheaper to buy credits then pour what will be 10s of $billions into this market to catch up.

FCA-Tesla is a match made in heaven. FCA sells RAM/Jeep trucks for big $$$, but has a huge CO2 problem, so it gives some of that $$$ to Tesla to get by. Tesla needs $$$ to survive, and FCA is a free money source. Win-win.

I would not be surprised to see chrysler (and possibly dodge) go away very soon. Jeep will still be around, but possibly sold to a company that wants to get into the big truck/SUV business. Don't know if that's Tesla or not, but it's a lot easier to buy factories than build them.

 

[abr]

FCA is light years behind developing HEV and BEV vehicles. It is far cheaper to buy credits then pour what will be 10s of $billions into this market to catch up.

FCA-Tesla is a match made in heaven. FCA sells RAM/Jeep trucks for big $$$, but has a huge CO2 problem, so it gives some of that $$$ to Tesla to get by. Tesla needs $$$ to survive, and FCA is a free money source. Win-win.

FCA / Stelantis will have to spend the money to develop or disappear. They sell tons of vehicles in Europe and will have to develop them for that market . . . they won't be able to buy their way out of those expenses.

 

[GoGoGadgetMachE]

I would not be surprised to see chrysler (and possibly dodge) go away very soon. Jeep will still be around, but possibly sold to a company that wants to get into the big truck/SUV business. Don't know if that's Tesla or not, but it's a lot easier to buy factories than build them.

Chrysler, for sure - it's dead company walking. Dodge might seem close, since they made "RAM" a separate brand, but as long as people keep buying Challengers and Chargers at the rate they are, Dodge will still exist. It's also where almost all the minivans right are now, which if Chrysler is dead, would have no other brand to go to (since other than the Pacifica they are all Dodge).

 

[Raymondjram]

I would not be surprised to see chrysler (and possibly dodge) go away very soon. Jeep will still be around, but possibly sold to a company that wants to get into the big truck/SUV business. Don't know if that's Tesla or not, but it's a lot easier to buy factories than build them.

Search in the Competition forum for my post related to the 2021 Jeep Wrangler PHEV. This vehicle will gain many sales since it has excellent HP and torque numbers for a off roader. And that can save Jeeo.

 

[NoMoPetrol]

An update on this thread:
https://carboncredits.com/tesla-carbon-credit-sales-reach-record-1-78-billion-in-2022/

So long as legacy automakers continue on their current path of ICE sales and/or aggressive EV press releases without subsequent EV production, Tesla is poised to be the biggest beneficiary.

And, for those of you who posted earlier about a potential sunset of these carbon credits, don't hold your breath on California's CARB ever acting to do so. In Southern California after 40 years of concerted application of emissions standards we can actually see the mountains that surround the LA-Inland Empire basin. Yet the LA basin still ranks among the areas in the US with the worst air quality.

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