Part 7/11:
Currently, ride-sharing profits are marginal, with high costs and inconsistent service quality at the lower end. However, at just a dollar a mile, Tesla’s robo-taxi service could dominate due to higher margins, larger market size, and a reduction in competition from traditional car ownership and ride shares.
Disrupting the Existing Market
Tesla's entry into autonomy isn't just about replacing individual car ownership or ride-hailing services; it fundamentally redefines the transportation landscape. Unlike traditional ride-sharing, which struggles to turn profits at higher rates, Tesla's RoboTaxi could deliver services at a fraction of current costs, scaling market size exponentially.