Comment by pjc50

I don’t know that you have to agree with typical consumer behavior to accept it as a reality, though. And resale value does matter to people who don’t drive cars into the ground, because trade-in value affects your purchasing power when you do decide to get a new one.

And even if you do keep cars indefinitely, it can still be an important consideration because it affects how things work out when you need to make an insurance claim. It means your car is both more likely to be declared a total loss and more likely to be worth less than what you still owe for it when it does get totaled.

Because if you desperately need cash, you can trade in the $80,000 luxury suv for a $20,000 subcompact, and use that cash to pay rent and for food. It's a depreciating asset and sometimes a money sink, sure, but if you live somewhere you need a car anyway, some people choose the more expensive ones.

It seems strange to me not to. Because if you don't sell it, you're basically the kind of person who drives a new car one day, but ten years later, you're a person who drives a ten year old car?

Speaking as someone who mostly drives 20 year old cars.

I get your point. But look at this from Tesla’s point of view. Why should they care? They will want to sell as many cars as possible. If they sell me a car, that’s just one sale. However, every marketing book will tell you that it’s easier to sell to an existing customer.

If my car (an asset) has more resale value, I’m more likely to sell it to buy a new one. They should be trying to protect my resale value — if they want me as a repeat customer. Even if I want to buy another Tesla, if my resale value isn’t high, I’d wait longer to buy a new one.

Or, what I’m leasing the car (reasonable for an EV and used to have better tax incentives)? If the end of lease value is low, I have to spend more on the depreciation over the lease. That makes my monthly payment higher. Instead, if the end of lease value is higher, I have a lower monthly payment and I’m more likely to buy the car.

Either way, Tesla was good at selling one car. They need to get better at selling the second or third one.

Because an old car often costs more in maintenance. It's best to re-sale it before it gives you too much trouble. Basically, you can have a more reliable car with no extra cost. And some people like modern and new cars and upgrade every few years.

For a lot of people cars are less a way to get from point A to point B and more of a status symbol, so they like to drive a new or at least newer car.

Personally I'm with you. I love my car because its exactly enough car for my needs. I bought it new (in 2016) and I never want to sell it. I'd get so much less (or more to the point I can't buy a new car) for the same money I spent on it.

If the company keeps the startup structure of paying employees in stock options and growing by VC money into the several billions value, yes a stock drop can kill it in and of itself.

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I don't like Musk, but this is the correct answer. So many people are trying to fit Tesla into the old OEM box but they are not a car company. They are a technology company that sells cars.

I don't know if robotaxi will take off, but if it does, it massively undercuts Waymo because the vehicles are just so much cheaper to make and are made in house.

The cars you describe are quite popular in HK, and typically family cars chauffeured by, well, a chauffeur. Carries a family of 4 plus a maid or two.

I'm sorry not everyone is swayed by LED lighting and plastic cupholders in fake chrome.

I've been seesawing between R1S and Gravity. Granted, I cant afford either right now, but planning for the future. But it made me realize : I don't know if I trust that Lucid will be around in a few years. Rivian seems more stable. And I don't want to buy a $100k car from a company that may not be around in a few years because then I basically have a brick.

Doesn't have the doors that go __-----