Apple – Page 947 – I wish I had more to offer

Aeva snags VW investment with smaller, longer range lidar

Lidar startup Aeva has deepened its relationship with VW Group with a new investment from Porsche Automobili Holding SE, thanks to a next-generation sensor that is headed for the ID Buzz AV, an electric reboot of the automaker’s iconic bus that will be used as autonomous taxis. Aeva’s newest lidar product called Aeries has a… Continue reading Aeva snags VW investment with smaller, longer range lidar

2020 Honda Ridgeline Arrives at Dealerships with New 9-Speed Transmission, Standard Honda Sensing®

The Honda Ridgeline is the ultimate tailgate vehicle for sporting events, picnics, and other gatherings thanks to industry-first and exclusive features like a Dual Action Tailgate that provides easy access to the lockable and weather-sealed In-Bed Trunk®, an available in-bed 115V AC power outlet, and a world’s first Truck Bed Audio System. This year, the… Continue reading 2020 Honda Ridgeline Arrives at Dealerships with New 9-Speed Transmission, Standard Honda Sensing®

Buy or Sell a Car via Mobile with the New eBay Motors App

SAN JOSE, Calif., Dec. 12, 2019 /PRNewswire/ — eBay Motors, one of the world’s largest marketplaces for all things automotive, is launching an all-new, automotive-focused app for Apple iPhone and Android. Powered by advanced technology, the app is a powerful tool for buying and selling vehicles directly from consumers’ mobile devices in an entirely new way.… Continue reading Buy or Sell a Car via Mobile with the New eBay Motors App

Mitsubishi Creates Top-Spec Van Version Of Outlander PHEV

The newcomer is designed to offer the luxury of an SUV and the tax breaks of a plug-in hybrid van. Mitsubishi has added a new top-spec model to its Outlander PHEV plug-in hybrid commercial vehicle range. The low-emission 4×4 has become a firm favorite among private customers, and Mitsubishi has long offered commercial versions aimed… Continue reading Mitsubishi Creates Top-Spec Van Version Of Outlander PHEV

Cars.com Predicts the Top 5 Trends That Will Shape the Next Decade in Automotive

CHICAGO, Dec. 12, 2019 /PRNewswire/ — As we enter a new decade, Cars.comTM (NYSE: CARS) today revealed its top predictions for the trends that will most impact car shoppers and sellers. Increasing consumer expectations, connected technology, rising loan prices, a pivotal presidential election, and an infatuation with electric and autonomous vehicles will shape automotive and result… Continue reading Cars.com Predicts the Top 5 Trends That Will Shape the Next Decade in Automotive

It’s Wrong To Value Tesla [TSLA] As An Auto Business

Invest
Electric Cars
Electric Car Benefits
Electric Car Sales
Solar Energy Rocks
RSS
Advertise
Privacy Policy

Autonomous Vehicles

Published on December 11th, 2019 |

by Johnna Crider

It’s Wrong To Value Tesla [TSLA] As An Auto Business

Twitter
LinkedIn
Facebook

December 11th, 2019 by Johnna Crider

Tesla is an auto business, but at the same time, it’s not. It has grown from that into something else and investors need to look at Tesla not from any single angle, but need to see it as the whole it is. The Spring recently published an article on the potential of Tesla services, and it challenges one to look at Tesla in a different light.

The article points out that Tesla has always been valued from the same perspectives that investors use to value auto businesses. This is great for any normal car company — they build factories, have high upfront expenses, and sell a new car to a customer every 10 years or so. Tesla looks like your typical auto company at a glance, and this is what investors seem to go by. Take a quick look, slap a value on it based on certain metrics, and move along.

I agree with the author of the article, Kevin Rooke, who believes it is “becoming increasingly wrong to value Tesla’s auto business like an auto business.” This is because Tesla is so much more than that. Tesla is also a tech business, an energy business, and is taking a few pages from Apple as it starts to become a services business, which is what the article focuses on.

Another point the author makes is that most of the time, automakers don’t even know who exactly their customers are. Tesla CEO Elon Musk keeps a close eye on customer feedback on Twitter, often interacting with Tesla owners, investors, and supporters.

The article also highlights that Tesla has a different approach to selling its cars. It has a direct-to-consumer business model, which means there are no dealers. Unlike Ford or other automakers that sell to dealerships once the cars are off the line, Tesla sells to the customers directly.

Regarding services, the article points out that Tesla’s services look a lot like Apple’s. Some quick comparisons include trade-ins, insurance, service centers, Premium connectivity, and Supercharging. This is actually a smart way to bring in recurring revenue. Some may complain about having to pay for something that was once free, such as WiFi, but $10 a month for the internet is likely to cover costs plus a small premium and is not that expensive. Still, an important point is the option is there to make more money on this down the road.

Rooke illustrates how quickly the services could become a core part of Tesla’s business by providing an example: imagine 2 years from now that Tesla has a fleet of 2 million vehicles with $1,000 per vehicle in services revenue per quarter. If Tesla achieves a 10% gross margin on these services, then that is an additional $800 million of profit per year just from these services. Rooke shows other examples as well and also demonstrates just how Tesla can turn its services into those big businesses by comparing what Tesla does with other automakers. You can read more about his thoughts here.

By embracing the services potential with its technology, Tesla is positioning itself to become even more profitable despite what critics, who only see it as a basic auto company, have to say or argue.
Follow CleanTechnica on Google News.
It will make you happy & help you live in peace for the rest of your life.

About the Author

Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

Advertise with CleanTechnica to get your company in front of millions of monthly readers.

Aeva shrinks size, cost of crucial self-driving sensor; deepens VW ties

(Reuters) – Aeva Inc said it has shrunk the main components of its “lidar” self-driving car sensor onto a single chip, a move it expects to dramatically lower the price of a sensor widely considered a bottleneck in the mass production of autonomous vehicles. The company, founded by ex-Apple Inc engineers Soroush Salehian and Mina… Continue reading Aeva shrinks size, cost of crucial self-driving sensor; deepens VW ties

Tesla hacker finds upcoming streaming video apps – HBO, Comedy Central, Twitch and more

A hacker has found assets within Tesla’s operating system suggesting that there are a slew of new streaming apps coming to Tesla’s in-car entertainment system. The list includes heavy hitters like HBO and Twitch. There are also assets for Comedy Central, Chinese video hosting service YouKu, and several more. Green is the same hacker who… Continue reading Tesla hacker finds upcoming streaming video apps – HBO, Comedy Central, Twitch and more

@Honda: Honda Holds World Premiere of 5th Generation Honda City

First time with a new 1.0 liter TURBO engine with 122 PS that offers driving performance superior to a 1.5 liter engine, torque equivalent to 1.8 liter engine, and fuel efficiency to a maximum 23.8 kilometers/liter. Exterior design combines sportiness and elegance with a more spacious cabin than other city cars. Value-added functions and features… Continue reading @Honda: Honda Holds World Premiere of 5th Generation Honda City

Galaxy S11 Series to Be Equipped with Superhigh Quality Cameras and Batteries with Large Capacities

Level of interests towards Samsung Electronics’ flagship smartphone ‘Galaxy S11’ that will be released in 2020 has heightened. Various predictions mixed with expectations are coming out like water confined by a dam.There is even a rendering image that reminds one of actual Galaxy S11 has come to the surface. Although the image is based on… Continue reading Galaxy S11 Series to Be Equipped with Superhigh Quality Cameras and Batteries with Large Capacities