5 years headstart means very little advantage in car industry unless you are developing ICEs.
I don't know if people realize how expensive it is to engineer an engine. Mercedes spent 4B $ to develop their diesel OM654. 4 billions of R&D to build an engine!
EVs don't have the same complexity, barrier of entry is much lower which is why Chinese are doing so well in them, even though they didn't with ICEs.
Auto industry will never be one where margins are good for long, doesn't matter who you are, it's a very expensive, risky low margin business if Tesla inverstors think thei company is immune they are in for a very harsh reality.
I don't know if people realize how expensive it is to engineer an engine. Mercedes spent 4B $ to develop their diesel OM654. 4 billions of R&D to build an engine!
EVs don't have the same complexity, barrier of entry is much lower which is why Chinese are doing so well in them, even though they didn't with ICEs.
Auto industry will never be one where margins are good for long, doesn't matter who you are, it's a very expensive, risky low margin business if Tesla inverstors think thei company is immune they are in for a very harsh reality.
This is like investing abc.