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Tesla's strategy is on full display, right now:
1. Build new factory, localize the supply chain, eliminate import tarrifs, reduce transit costs
2. Serve latent/pent-up demand in the market from local production
3. Keep increasing volume and dropping costs with scale.
1. Build new factory, localize the supply chain, eliminate import tarrifs, reduce transit costs
2. Serve latent/pent-up demand in the market from local production
3. Keep increasing volume and dropping costs with scale.
4. Cut price as costs decline, keeping margins stable - and widening the addressable market
5. Keep improving FSD --> this increases penetration. Increase price --> this increases perceived value
6. Leverage increased software revenue to support further price decreases
5. Keep improving FSD --> this increases penetration. Increase price --> this increases perceived value
6. Leverage increased software revenue to support further price decreases
7. Introduce a new model from the new GF which is most popular in the local market to maximize domestic consumption:
Austin = Cybertruk (serving mainly USA)
Berlin = Hatchback sedan (serving mainly EU)
China = Compact sedan (serving mainly APAC)
Austin = Cybertruk (serving mainly USA)
Berlin = Hatchback sedan (serving mainly EU)
China = Compact sedan (serving mainly APAC)
8. Repeat steps 2-6.
9. Continue to build user base as software evolves. Launch subscription model to maximize FSD penetration among said user base.
10. Launch Tesla Insurance globally to help quell concerns regarding FSD and liability. Also to maximize sales.
9. Continue to build user base as software evolves. Launch subscription model to maximize FSD penetration among said user base.
10. Launch Tesla Insurance globally to help quell concerns regarding FSD and liability. Also to maximize sales.
11. Expand car insurance to home, life, disability insurance. Provide a 1-stop shop for all customer needs.
12. Launch value-adding SaaS options for FSD users = exclusive games, apps, etc. This increases value prop of FSD further--> higher penetration --> higher sales.
12. Launch value-adding SaaS options for FSD users = exclusive games, apps, etc. This increases value prop of FSD further--> higher penetration --> higher sales.
13. Meanwhile, leverage batteries from the new factories to grow stationary storage locally, pushing down costs of solar + storage.
14. Disrupt local distributed energy markets with cheaper + cleaner energy.
15. Continuing launching new cars until all major segments served
14. Disrupt local distributed energy markets with cheaper + cleaner energy.
15. Continuing launching new cars until all major segments served
