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1/Thread on Tesla’s big missed opportunity in pick up trucks from the view of Construction Industry: By going after TSLA fanboys with new truck design TSLA immediately cut themselves off from a HUGE potential market, the construction and service industry.
2/My family has been in const. business for over 60 years in multiple businesses; production home building, developing, excavation, utility work, asphalt, trucking, equipment rental, landscaping, commercial building, property mgmt, etc. They all have one thing in common...
3/They own lots and lots of pick up trucks. We provide trucks for foremen, project managers, estimators, salesmen, laborers, layout men, mechanics, and on and on. TSLA missed a huge opportunity with our businesses and thousands and thousands more like them across the globe.
4/Something Ford & GM have figured out that TSLA hasn’t is what it costs a business to buy a truck vs what it costs an individual. Let’s assume a $50k truck, and individual at 30% tax rate and a corporation at a 37% tax rate.
5/The individual has to first earn $71.5k and pay 30% taxes to have $50k to buy the truck. The Corp earns $50k and can either mail 37% off to Uncle Sam or invest in a new $50k truck and expense it over 5 years to lower future tax pmts. (Or 1 yr with 179 bonus depreciation)
6/The individual’s cost: $71.5k
The Corp’s cost: $50k (or less depending how you look at it)
The Corp’s cost: $50k (or less depending how you look at it)
7/We use new pick up trucks as a form of compensation all the time. Have a valuable employee you are worried about getting poached my a competitor? Put him in a brand new pick up.
8/Not to mention that if what TSLA says is true, these businesses are going to immediately save money in gas savings and maintenance. What business doesn’t want that? But more important than that is what going to an EV buys you, good PR.
9/Construction and related fields are considered “dirty businesses”. Imagine an “evil” miner or developer being able to run a PR campaign promoting them switching to all EV truck fleets. Businesses would immediately jump on this opportunity to help our “dirty” stigma.
10/But by going with the Cybertruck design they completely closed themselves off to any kind of business and endeared themselves to only the most staunch TSLA supporters.
11/I have been short $TSLA for over a year now but it has never been because of the product. I think TSLA cars look great and probably are good products. I think they could have designed a sexy looking truck that appealed to Ford and GM customers as well as TSLA fanboys.
12/I believe TSLA along with the rest of Silicon Valley is severely out of touch with consumers between LA and NYC. Potential buyers in TX, GA, OH, TN, etc would not be caught dead in one of these. If I pulled up on my job site in one I would get laughed off of it.
13/The potential addressable pick up truck market in construction, business services, and many many more industries is too big to miss right off the bat. That is precisely what TSLA has done with its Cybertruck. End Thread.
