[maverick-iceman]

> as the car business requires a lot of capital

And thus it's a bad business by definition, which doesn't merit billions of capital investments.

Even if the investment thesis is that the whole world is rooting for them, and government will turn lots of blind eyes because of the "green mission", and they'd be first in line ESG funds allocation of capital...

Still all those elements don't propel you to SaaS type margins such as Google or Microsoft or Facebook.

Frothy valuations for companies which are building stuff in the real world are driven by the promotional power of said stuff and the CEO marketing ability, in fact people are fascinated by cars, it looks cool and it's out there in front of you.

[_ea1k]

IMO, you really aren't wrong about it being a bad business. There's a reason that so few have been successful. I can count on one finger the number of American companies that have been founded and made it past 100k units in my lifetime. One hand for those that made it to even the first few thousand units.

Its not an investment that I'd want to make. I'm glad that folks are trying anyway, though. I love cars and love the products, but I can't rationalize it as a great business to invest in.