Remind Me, Is Checker Motors Still a Going Concern?


This does not look futuristic

Well, it appears that Elon Musk has finally come up with a sustainable business model for Tesla.

Unfortunately for him, his business model is to sell only commercial self driving cars for hundreds of thousands of dollars, because self driving is such a value enhancer, because you can rent out your car as a hack while you are not driving.

Checker Motors made a dedicated taxi and failed almost 40 years ago, and while the car was specifically made to the needs of the taxi industry, it could not compete with the volume advantages of major car manufacturers.

Seriously, the idea that Tesla self-driving, which I expect to remain a decade away into the 2030s, is not going to be an exclusive feature of Tesla Motors, and (if cost trends continue) the marginal cost of the system will be under $10,000.

But still, Elon Musk has declared that it won’t sell private automobiles once its “Autopilot” is ready for unsupervised road use.

This dude is one lab accident, and one platypus, away from becoming Heinz Doofenschmirtz:

The company believes its vehicles will be worth hundreds of thousands of dollars over their useful lifetime.

Tesla CEO Elon Musk has warned that the company’s car pricing will potentially multiply after the company launches its ride-hailing service.

The executive recently claimed Tesla’s vehicles will be worth hundreds of thousands of dollars over their useful life when operated as part of a fully autonomous robotaxi fleet. The presentation did not answer the obvious question at the time: why would Tesla sell any cars to consumers if they become worth so much more for a taxi service?

Musk yesterday confirmed the likely price increase when asked on Twitter if consumers have limited time left to buy a Tesla car before prices “go up severalfold to balance supply and demand” once the company solves full self-driving.

“To be clear, consumers will still be able to buy a Tesla, but the clearing price will rise significantly, as a fully autonomous car that can function as a robotaxi is several times more valuable than a non-autonomous car,” he added in a later post.

Seriously:  This business model is delusional.

Unlike Oracle, or Peoplesoft, or SAP, any car can operate on any road.

There is no vendor lock-in.

I am not surprised that Elon Musk became rich through regulatory arbitrage and luck, but I am puzzled as to why people see him as a visionary, as opposed to a purveyor of Silicon snake oil.

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