Tesla cuts prices as Model 3 deliveries narrowly miss estimates
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Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#2The second line in the article:
> Prices cut by $2,000 to partially offset shrinking tax credit.
At that cost range I don’t know if I could ever know my customer well enough that I would be confident that a 3% price break would get more sales but what do I know. Also, this feels more like PR.
What fraction of the cost of a Tesla is the battery pack? Weren’t those supposed to be getting cheaper due to all of the automation?
When your costs decline you lower your prices, add more features or increase your margins.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#3Tesla is definitely hitting the demand ceiling. It's a good thing Musk isn't producing 10000 M3 per week. The current rate of ~4500 per week is enough to meet demand.
In fact, expect continuous price drops from Tesla as it struggles to drum up enthusiasm
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#4The production and delivery numbers they came out with were very good and higher than most had expected. These numbers will allow them another profitable Q4 likely higher than their Q3 numbers.
The price cuts are likely to impact margins, but is in line with what Tesla had done with the Model S and X as production efficiencies allow them to reduce manufacturing costs.
The reaction looks like a big overreaction as the market is apt to do. Seems like there is a lot of Tesla hate on the internet for some odd reason these days.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#5Another thing is the pre 2017 car-pool stickers for electric cars are expiring in the bay area. The newer stickers have income caps of $150k (single filing) or $300k (joint filing). I wonder what the impact will be on Tesla? The first change helps them but the second hurts them.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#6Tesla is definitely hitting the demand ceiling. It's a good thing Musk isn't producing 10000 M3 per week. The current rate of ~4500 per week is enough to meet demand. In fact, expect continuous price drops from Tesla as it struggles to drum up enthusiasm
Demand ceiling for the US or for the world? I suspect they've hit the former, but that there's a lot of demand in the latter.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#7This actually a price increase because of a loss of the federal tax credit... the title is bogus and should be changed imho.
"Moving beyond the success of Q4, we are taking steps to partially absorb the reduction of the federal EV tax credit (which, as of January 1st, dropped from $7,500 to $3,750). Starting today, we are reducing the price of Model S, Model X and Model 3 vehicles in the U.S. by $2,000."
http://ir.tesla.com/news-releases/news-release-details/tesla...
Edit: the mods changed the title. thank you!
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#8Tesla is definitely hitting the demand ceiling. It's a good thing Musk isn't producing 10000 M3 per week. The current rate of ~4500 per week is enough to meet demand. In fact, expect continuous price drops from Tesla as it struggles to drum up enthusiasm
I’m not pro-Tesla, I think they’re horribly mismanaged, but let’s be real.
The Model 3 is selling well, and ONLY in the US. Even if they hit peak demand they can just start selling to Europe and China (planned for later this year) and they’ll have plenty of new customers.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#9This actually a price increase because of a loss of the federal tax credit... the title is bogus and should be changed imho. "Moving beyond the success of Q4, we are taking steps to partially absorb the reduction of the federal EV tax credit (which, as of January 1st, dropped from $7,500 to $3,750). Starting today, we are reducing the price of Model S, Model X and Model 3 vehicles in the U.S. by $2,000." http://ir.te…
In what way is it a price increase, why did Tesla count tax credits when advertising price in the first place? Isn't that dishonest, since the cars price tag was higher and the government gave them money?
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#10Tesla is definitely hitting the demand ceiling. It's a good thing Musk isn't producing 10000 M3 per week. The current rate of ~4500 per week is enough to meet demand. In fact, expect continuous price drops from Tesla as it struggles to drum up enthusiasm
Demand ceiling for the US or for the world? I suspect they've hit the former, but that there's a lot of demand in the latter.
The market for EVs is expanding. As Tesla starts shipping worldwide they will find the sweet spot for the US.
Big takeaway here is they are very profitable producing at current rates. As they bring out new models they will continue to grow at 30-50% per year.