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Cake day: October 25th, 2023

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  • Economic barriers to entry are typically listed as the key hurdle in new entrants to the car industry. This may come down in the future as skateboard electric power trains become more widespread.

    But it’s not just stuff you think you can make yourself, a lot of it is finding and ordering parts from those parts that already exist. Sourcing parts and establishing contracts for delivery and quality and having the cash to pay for those is insanely complex.

    That said, of course you can become a coach builder for very little money relatively speaking. This means churning out one offs at huge sale prices because you can replace expensive equipment (see: capital investment)with inexpensive equipment and labor.

    Scaling is damn near impossible and almost killed Tesla numerous times - it will probably kill some of the newer competitors like Lucid over time once VC firms are no longer subsidizing loses