If a Tesla Cybercab fleet were profitable, Tesla wouldn't sell you one
Tesla is pitching businesses on buying and operating Cybercab fleets on its robotaxi network, promising passive income. But Electrek argues the offer is a trap: Tesla would keep the profitable asset for itself if it truly generated returns. The article cites MisterGreen, a Dutch leasing firm that went bankrupt after betting on Tesla's promises, and warns that fleet buyers would absorb depreciation and risk while Tesla keeps software margins and network fees.
Companies don’t outsource money machines. They outsource risk.
- fieryscribe
If McDonald's was profitable, they wouldn't try to franchise it.
That's what this is. You take on operating costs and you understand your local market. They own the brand.
- kazinator
> Tesla is now asking businesses whether they’d like to buy and operate their own fleets of Cybercab robotaxis on its network.
Would you like to pay for the privilege of using our network, with hardware you buy from us, in order to subsidize our costs of running that network for ourselves so our cost turns into a profit, so we can then compete with you on that same network?
He must have been having lunches with Bezos.
- riknos314
The author misses the difference between cashflow and profit entirely.
Selling a car today gives Tesla the full profits of that hardware production today. Running that car as a robotaxi means that Tesla eats the costs of the hardware today in exchange for a larger total profit collected over several years.
So operating a fleet gives the company access to more long-term profits at the cost of decreasing the bank balance today (negative cash flow), where selling the cars lets the company fill the bank account right now (positive cash flow) at the cost of limiting long-term profitability.
The decision to prioritize immediate cash flow vs long term profits depends on the financial position and overall strategy of the company.
- contravariant
Bit of a weird world where we don't have self-driving cars but we did manage to automate the writing of articles lamenting that fact.
- dzonga
people r tryin' to equate this to a franchise model, some the amazon 3rd party model.
nope - this is just Elon raising money without going to the stock market or government but directly to Elon worshipping idiots.
he benefits two ways - interest free Capex, then higher stock prices by reporting higher number of cybercabs on the road. & guess who takes a punch to the mouth - the Elon worshippers.
with the amazon model | franchise models there's shared risk - not exactly equal but shared risk.
with Elon - one person is eating the risk, while one person eats 90% of the gains.