Having approximately $44 billion in cash on hand is not a massive cash reserve for any company with the market cap of Tesla ($1.3 trillion). Even less so when you realize how capital intensive its current car and non-existent robot business is… The entire EV market is risky right now for margin compression as Chinese EV manufacturers are really pulling ahead. It’s pretty wild to see just how far they’ve progressed while the west mostly does nothing. Even Tesla hasn’t provided any real innovation in years in regards to their core business. And from what I can tell, they’re pretty much outright ignoring their auxiliary businesses.
replyIf Optimus fails to impress, and gain traction, I’d seriously expect Tesla to end up a subsidiary of SpaceX within the next ten years as Elon tries to protect up his net worth.
That's why I think the Optimus thing might make sense from a 'market cap' perspective. Tesla is great at innovation and ramping global manufacturing for new tech. Ten years ago, that was EVs. But now EVs are becoming a commodity and every other car company is catching up.
replyI do think 'self driving' is still their 'moat' when it comes to EVs. I use it every day, and nothing else comes close. But other than that, building EVs is becoming a cut-throat slim-margin business. I don't think that's where Elon, or Tesla employees, want to spend their energy.
> It’s pretty wild to see just how far they’ve progressed while the west mostly does nothing.
replyThe “west” came up with Tesla and Rivian, and their cars are on the road. And the US tariffed chinese EVs. What else can be done to combat China’s lower priced labor and possibly more lax environmental regulations?