Up until 2021, everybody buying an EV expected to be underwater. EV prices were dropping 10% per year and Tesla was promising to deliver the Cybertruck for $40k. So if you could get a Cybertruck for $40K, a new Model Y would be a similar price. And if anybody could get a new model Y for $40K, obviously a used Model Y would be worth substantially less than that.
But we bought anyway -- it was like buying computers 20 years ago -- yes, you could buy a lot more computer for less money in a few months, but if you were always waiting you'd never buy a computer.
The difference is that we expected the same thing to happen to gas cars. If you can buy a good electric car brand new for $30K, any used car gas or electric is worth substantially less than that.
And that's what would happen if we had access to Chinese cars and prices. $8K for a pretty good small car. $15K for a model 3 competitor. $25K for a model Y competitor. $35K for Porsche Macan competitor.
> Up until 2021, everybody buying an EV expected to be underwater
Not if they believed the CEO of Tesla, he was out there telling them they would be buying an appreciating asset. And now, that might sound dumb (and in hindsight very clearly is), but there were a lot of people who did believe.
But we bought anyway -- it was like buying computers 20 years ago -- yes, you could buy a lot more computer for less money in a few months, but if you were always waiting you'd never buy a computer.
The difference is that we expected the same thing to happen to gas cars. If you can buy a good electric car brand new for $30K, any used car gas or electric is worth substantially less than that.
And that's what would happen if we had access to Chinese cars and prices. $8K for a pretty good small car. $15K for a model 3 competitor. $25K for a model Y competitor. $35K for Porsche Macan competitor.