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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

#21

Post by withhighprod »

qroshan wrote: post #16
MBCook wrote: post #8

Earlier quoted context omitted.

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.

It's called Pent up Demand. US is the richest and most car friendly nation of the world. There aren't many countries in the world who can afford a $50,000 car especially when there are poor charging infrastructure.

China is an exception where cars are relatively much more expensive while people still buy it(e.g. 300k RMB could only buy you entry level “decent” car)

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#22

Post by qroshan »

wnorris wrote: post #4

The 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…

At $50B Market Cap, Tesla should be delivering at least $2B Annual profits.

It's clear Tesla has run through higher margin demand. There aren't many people in the world who can afford a $50,000 car. Tesla is a niche market car, but priced as a mass market (like iPhones) product.

Expect Tesla's sustainable profit to be around $500 Mil per year and it's share price must be cut in half to justify that

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#23

Post by conception »

wnorris wrote: post #4

The 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…

Not sure if you're being sarcastic or not but Musk had become a liability for Tesla for certain. The once "Tony Stark" has had a serious of Twitter meltdowns and absurd business proposals.

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#24

Post by sxates »

pkaye wrote: post #5

Another 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.

According the to CARB website [1], the income cap only applies to the state EV rebate, not the carpool stickers.

[1] https://www.dmv.ca.gov/portal/dmv/detail/vr/decal

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#25

Post by wnorris »

MBCook wrote: post #8
qroshan wrote: post #3

Tesla 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.

Tesla has made mistakes...especially Elon's timelines. Those have gotten better of late.

That aside, one has to also consider the limited number of stores that Tesla has at this point in time. As they increases the number of stores their market reach will increase. Combine this with new global markets and it is clear that they will do fine for at least the next couple years.

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#26

Post by andrewtbham »

BrentOzar wrote: post #11
andrewtbham wrote: post #7

This 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…

> This actually a price increase because of a loss of the federal tax credit... the title is bogus and should be changed imho. The ceiling in the title refers to a ceiling of what customers are willing to pay. Tesla apparently believes customers won't pay the full price without incentives, so they're cutting the price they charge you. While it's an increase in the sense that the government stopped making it cheaper f…

As of today Teslas cost $1,750 more than yesterday. It is effectively a price increase in the US. The tax credit went down, raising the price by $3,750. Tesla lowered the price by $2,000.

$3,750 - $2,000 = $1,750

This doesn't signal a ceiling for price as the title implies. I implore the mods to change the title. It's misleading clickbait.

You can tell from the url the original title was much more reasonable... "Tesla cuts prices as model 3 deliveries narrowly miss estimates"

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#27

Post by FireBeyond »

jpollock wrote: post #18
izacus wrote: post #9

Earlier quoted context omitted.

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?

The purchaser factors the tax credit in, so the removal of the credit will have the same effect as an increase in price. The salesman will _definitely_ make the purchaser aware of the credit, in the same way that a mortgage broker makes you aware of the tax benefit on mortgage interest (in the US). That doesn't make them dishonest.

They also tried to include "cost of gas savings" in some of their "line item" website pricing.

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#28

Post by wnorris »

conception wrote: post #23
wnorris wrote: post #4

The 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…

Not sure if you're being sarcastic or not but Musk had become a liability for Tesla for certain. The once "Tony Stark" has had a serious of Twitter meltdowns and absurd business proposals.

lol...he had a spell with some poor choices no doubt, but calling him a liability is a little much. One hopes he learned from his episodes.

https://www.cnbc.com/2018/11/19/neil-degrasse-tyson-elon-mus...

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#29

Post by eclipxe »

pkaye wrote: post #5

Another 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.

You are incorrect. The income cap is just for the CVRP rebate. https://www.dmv.ca.gov/portal/dmv/?1dmy&urile=wcm:path:/dmv_...

Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates

#30

Post by eclipxe »

tw04 wrote: post #20
pkaye wrote: post #5

Another 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.

Did they give any justification for the change? It makes absolutely no sense to me why you'd put an income cap on that - don't you wan to encourage EVERYONE to burn less fossil fuels, REGARDLESS of income?

The OP is incorrect, there is no income cap on carpool stickers.
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