Ogre
Well-known member
- First Name
- Dennis
- Joined
- Jul 3, 2021
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- 164
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- Location
- Ogregon
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- Model Y
What in gods name makes you think this?- Tesla does not hedge the possible price increase in materials for any of its pre-orders
Tesla absolutely hedges raw materials prices and establishes long term contracts to ensure pricing. With the sort of quantities they are dealing with they could not source enough raw materials to produce the cars they do. They just secured a long term deal for lithium. We know they have a long term agreement for stainless steel. There are certain to be long term agreements in place for everything they need in large quantities.
Right back atcha buddy.Whoever thinks that Tesla will not increase Cybertruck's price (in one form or another) simply doesn't understand economics
Tesla’s margins have been ***Growing*** through this turmoil. If they were getting thrashed by raw materials prices, their margins would be getting hit or breaking even.
If anyone is going to need to increase prices, it is Rivian and they haven’t budged. Rivian needs positive cash flow to grow their business, and they are under growing pressure to produce revenue and profits. If Rivian can lump this out, Tesla with their 30%+ margins isn’t going to even break a sweat.
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