Tesla cuts prices as Model 3 deliveries narrowly miss estimates • Hacker News Board

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

#51

Post by djtriptych » Wed, Jan 02, 2019, 6:12 PM UTC

Derek_MK wrote: post #35

wnorris wrote: post #28

Earlier quoted context omitted.

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...

He caused the SEC investigation that probably impacted them enough to miss the targets mentioned in the article. He also has a DOJ investigation in progress against him and Tesla. He is a liability.

Tesla's product is their stock. Musk is a liability iff removing him would cause the stock price to go up. I highly doubt that.

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

#52

Post by Nursie » Wed, Jan 02, 2019, 6:13 PM UTC

johnvanommen wrote: post #43

qroshan wrote: post #22

Earlier quoted context omitted.

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

Once Jaguar, Porsche and Audi are able to produce electric cars in quantity, things are going to get interesting. For instance, I was recently looking at the Jaguar I-Pace, and was stunned by how long the wait and how high the markups are. Clearly there's a demand for a $100,000 electric car, but things are going to get difficult for Tesla once the competition arrives.

The i-Pace makes me drool far more than Tesla... but it's going to be a while before I can afford either so it's rather a moot point!

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

#53

Post by luckydata » Wed, Jan 02, 2019, 6:13 PM UTC

johnvanommen wrote: post #43

qroshan wrote: post #22

Earlier quoted context omitted.

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

Once Jaguar, Porsche and Audi are able to produce electric cars in quantity, things are going to get interesting. For instance, I was recently looking at the Jaguar I-Pace, and was stunned by how long the wait and how high the markups are. Clearly there's a demand for a $100,000 electric car, but things are going to get difficult for Tesla once the competition arrives.

Competition has been arriving for quite a while though. Having just bought a Tesla, I can tell you I'm starting to appreciate more than just intellectually the huge network of chargers and other infrastructure that company has laid out. It's not perfect but anyone else wanting to play in this market will need the same, and Jaguar is in no position to do it. I don't think anyone at Tesla is losing any sleep over Jaguar TBH but they might be looking intensely towards Toyota.

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

#54

Post by 300bps » Wed, Jan 02, 2019, 6:14 PM UTC

qroshan wrote: post #39

btian wrote: post #37

Earlier quoted context omitted.

> At $50B Market Cap, Tesla should be delivering at least $2B Annual profits. LOL what? Show me another company with $50B market cap growing at 50% a year on the top line to deliver $2B in profits. I'll wait.

Huh? Did you compare Q3 and Q4 numbers, the growth has pretty much reached steady state. 90,000 per quarter is what Tesla will be and probably 500 Million annual profit. 50% profit growth is delusional at this stage

Q32018: 55,800 Model 3s delivered.

Q42018: 63,100 Model 3s delivered.

That's a 13% growth rate in a single quarter which is more than 50% growth rate annualized.

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

#55

Post by mhermher » Wed, Jan 02, 2019, 6:14 PM UTC

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…

They missed expectations on production and delivery.

Right before a debt offering btw.

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

#56

Post by sandworm101 » Wed, Jan 02, 2019, 6:15 PM UTC

golfer wrote: post #44

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…

People are skeptical of Tesla because people are skeptical of Elon. His dozens of misleading statements and half-truths over the years have caught up with him.

The pot smoking and twitter insults also dont help.

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

#57

Post by mhermher » Wed, Jan 02, 2019, 6:16 PM UTC

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…

Price increase for the buyer. Price reduction for Tesla, which is mostly what matters here if we are talking about the health of the company. Totally bogus though, you should submit it to Pravduh.

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

#58

Post by gamblor956 » Wed, Jan 02, 2019, 6:18 PM UTC

dqpb wrote: post #48

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…

My feeling is that there is a coordinated media attack against major US tech companies.

The thing about massive conspiracies is that it only takes a single participant to leak their existence. And for a conspiracy like what you're suggesting, there would be tens of thousands of participants.

It's time to let reality back in and accept that there is no media conspiracy. The big tech companies overreached and now the roosters are coming home to roost after 2 decades of largely unearned fawning media coverage.

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

#59

Post by Derek_MK » Wed, Jan 02, 2019, 6:21 PM UTC

sandworm101 wrote: post #56

golfer wrote: post #44

Earlier quoted context omitted.

People are skeptical of Tesla because people are skeptical of Elon. His dozens of misleading statements and half-truths over the years have caught up with him.

The pot smoking and twitter insults also dont help.

Neither does the SEC investigation that got him for fraud

EDIT: SEO > SEC - Context switching is hard

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

#60

Post by ken47 » Wed, Jan 02, 2019, 6:22 PM UTC

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…

> is in line with what Tesla had done with the Model S and X as production efficiencies allow them to reduce manufacturing costs.

Straight from Tesla's press release: "we are taking steps to partially absorb the reduction of the federal EV tax credit"

So no, this price reduction is not "in line" with anything in Tesla's past.