Opinion | Peter Navarro: What’s good for Elon Musk and Tesla is not good for America WashTimesOpEd
is one of the smartest humans on the planet, and it is critical to understand several key economic concepts underlying his price-cutting strategy.
The first is “economies of scale.” Industries like auto manufacturing that require massive capital investments can best lower unit costs of production by expanding factory scale. Whichever company achieves the greatest economies of scale will thereby have the firepower to drive out other competitors through lower, and yes, predatory prices.
With such “predatory pricing,” the largest companies can drive out the smaller ones by driving down prices to their cost of production, thereby earning zero profits but not operating at a loss. In contrast, smaller companies can’t match that predatory price without losing money and are thereby driven out of the market.
This is why historically, we never saw a proliferation of hundreds of auto manufacturers but rather simply the Big Three of General Motors, Ford and Chrysler and foreign giants like Toyota, Hyundai and BMW. And extinction is precisely the fate that awaits the U.S. automakers Ford and GM if Tesla succeeds in dominating the electric vehicle market.
You might think that lower Tesla prices at a time when inflation is raging would be good for America. Enter stage Marxist left,
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Tesla's Elon Musk Offers Tunnel To Help Japan With Busiest IntersectionIn a recent post, Musk suggested that Japan should use The Boring Company’s services, which could potentially cut down on the chaos in one notable urban center.
Lire la suite »
Elon Musk pins birthrate drop on abortion while Tesla pays for itTesla and Twitter CEO Elon Musk reiterated his concerns about falling birthrates during an interview with Tucker Carlson.
Lire la suite »
Tesla is hurt by Elon Musk's multitasking with SpaceX, Twitter, investors sayA group of Tesla investors has accused the company of mismanagement and seeks a meeting with its board to discuss the performance of CEO Elon Musk.
Lire la suite »
Big Tesla investors call for board to rein in Elon MuskA group of Tesla investors including big pensions and institutions are calling for the board to rein in Elon Musk
Lire la suite »
Tesla Launches Non-Tesla EV Supercharging Pilot In ChinaTesla has just expanded its Non-Tesla Supercharger Pilot program to China, where for the very first time other electric cars can use Tesla Superchargers.
Lire la suite »
Elon Musk Brags About Size of His Donation, Misses Stephen King PointICYMI: Instead of taking a second to get StephenKing's point, Twitter's ElonMusk responded to King by bragging about the size of his... donation. Opinion / bluecheckmark
Lire la suite »