# Elon Musk Outlines How Teslas Will Be Worth Five Times What You Paid. Here s How His Math Is Wrong

Submitted by brad on Thu, 2023-07-20 11:52

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Elon repeated the claim of huge value in hiring out your car. But a taxi is more a consumable than an asset and the math doesn't work.

Read more at Forbes.com in Elon Musk Outlines How Teslas Will Be Worth Five Times What You Paid. Here s How His Math Is Wrong

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Autological

Fri, 2023-07-21 09:26

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## Where's the math?

What, no actual calculation of costs? I was surprised. So I went and looked it up or you. Uber charges up to 2 bucks a mile, and a new Model 3 costs less than $30K with rebates, so for 15K miles of rides, the car pays for itself. Using your number of 250K miles per car, that's a cool half million earned from a $30K investment. Sound like a great deal to me!

brad

Fri, 2023-07-21 16:00

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## No calculation

I've done the calculations many times, but the key point is that while Uber charges $2/mile or so (with a minimum of $8 to $10) the demand at that price is modest. Uber only had $34B of revenue in the last year. You may say that's a lot, but it's not for Alphabet, and Uber only gets 25% of that, and really much less (it doesn't make much profit.)

Robotaxi service is great, but it's the profits that matter, not the revenue. And when a million other Tesla owners are competing with you, profits will be minimized. Plus millions of other robotaxis are competing with you.

In a competitive, large marketplace, you don't get $2/mile. $1/mile will be lucky. Really you will get the underlying cost plus a modest margin. Perhaps you make 5 cents/mile of profit. 250,000 miles then is $12,500 of profit -- doesn't even pay the $15K fee for FSD.

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