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Tesla cuts prices as Model 3 deliveries narrowly miss estimates

bloomberg.com

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

#211

Post by luckydata »

zaroth wrote: post #179
gamblor956 wrote: post #122

Earlier quoted context omitted.

I know quite a few Tesla owners, and they all love the idea of the car far more than the actual cars themselves. After about a week, reality sets in and the misaligned panels, haphazardly responsive touchscreen, and relatively pedestrian interior furnishings start becoming noticeable. After about 2 weeks, the Tesla owners who don't live in homes (i.e., condo/apartment dwellers) even start to get annoyed at the chargi…

As a Model 3 owner, I have never been happier or more impressed with any car I have ever driven. It’s more fun to drive than my old Camero SS. It’s more comfortable than my old Infiniti. I absolutely love the interior aesthetic. And I just paid $3,500 to PPF wrap it because I think it’s absolutely gorgeous and I want to keep it looking that way. Oh, and I paid $45k not $65k, and it saves me at least $100 a month on t…

Where did you do the wrap? I can't find a shop that carries the cutout for the Model 3. Bay area?

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

#212

Post by hi5eyes »

csours wrote: post #112
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…

> "The production and delivery numbers they came out with were very good and higher than most had expected." Every Model 3 they are producing is relatively expensive and already has a buyer. What happens when they get to the end of the list of relatively well off buyers? Certainly there will still be demand, but it will be less profitable.

>Every Model 3 they are producing is relatively expensive and already has a buyer. What happens when they get to the end of the list of relatively well off buyers? Certainly there will still be demand, but it will be less profitable

they've already run out, did you not see all the tweets about tesla stores being open up until the end of the year and the reduction in price and the extra cars? clearly they've exhausted the areas they're allowed to sell in

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

#213

Post by beatgammit »

lazyjones wrote: post #38
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

> At $50B Market Cap, Tesla should be delivering at least $2B Annual profits. When Amazon reached that mark in 2009, their annual profit was slightly over 1B... And the car industry isn't famous for particularly high margins. > 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 There are no such rules for share prices, especially with this kind of…

Yeah, there are plenty of avenues for Tesla to increase profit, such as:

- new vehicle markets (def. semi trucks, perhaps boats and trains as well) - solar - military

They don't have a ton of baggage like their competitors, so they can pivot their battery business in a variety of ways without too much additional investment.

The real question is if they can stay ahead of competition as they expand.

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

#214

Post by davidgould »

nomel wrote: post #110
goshx wrote: post #36

Earlier quoted context omitted.

There are enough countries, though. Regarding charging infrastructure, have you seen this map lately? https://www.tesla.com/findus?v=2&bounds=76.18385340904877%2C...

I don't think this includes the convenience fee in having to use a supercharge station to recharge your car. If you don't have the ability to charge at home (condo or apartment), the idea of waiting at some energy pump for 30 minutes every morning is the opposite of alluring.

Given that 30 minutes of supercharging will add over 200 miles of range to a Tesla, I doubt many people will need to do this every morning.

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

#215

Post by outworlder »

gamblor956 wrote: post #82
tw04 wrote: post #20

Earlier quoted context omitted.

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?

Why should everyone else pay for the rich to get a tax break and free usage of HOV lanes? They're the ones who can most afford to pay for those things, and the ones most likely to want to buy a vehicle for bragging rights.

"Rich"? I've seen Nissan Leaf leases for as low as $90 a month.

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

#216

Post by microtherion »

martythemaniak wrote: post #101
microtherion wrote: post #73

Earlier quoted context omitted.

> Even if they hit peak demand they can just start selling to Europe and China To what extent would they have to invest in charger networks there, though?

They already have, almost as much as the US. Take a look at the supercharger map.

Thanks for the pointer! It looks like Western Europe has reasonable coverage, but plans to at least double that. Eastern Europe (including Greece) has no existing superchargers, but extensive expansion plans.

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

#217

Post by lazyjones »

beatgammit wrote: post #213
lazyjones wrote: post #38

Earlier quoted context omitted.

> At $50B Market Cap, Tesla should be delivering at least $2B Annual profits. When Amazon reached that mark in 2009, their annual profit was slightly over 1B... And the car industry isn't famous for particularly high margins. > 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 There are no such rules for share prices, especially with this kind of…

Yeah, there are plenty of avenues for Tesla to increase profit, such as: - new vehicle markets (def. semi trucks, perhaps boats and trains as well) - solar - military They don't have a ton of baggage like their competitors, so they can pivot their battery business in a variety of ways without too much additional investment. The real question is if they can stay ahead of competition as they expand.

> The real question is if they can stay ahead of competition as they expand.

So far they have not only expanded their lead (e.g. Nissan Leaf used to be a bestseller), they've also proven that they got their priorities right from the start. Look at the new Audi e-tron, the Mercedes GLC and the i-Pace: they're all suffering from horrible aerodynamics that cost them 20% or more range at freeway speeds compared to Teslas. They have no fast charging networks able to support similar sales numbers even to Model S/X. Tesla apparently did proper planning while the big car makers are just trying to produce their usual cars with electric engines. They are now making expensive mistakes that Tesla avoided altogether, so I'm confident about Tesla's leadership.

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

#218

Post by nihonde »

xedeon wrote: post #154
nihonde wrote: post #42

Earlier quoted context omitted.

China has a higher barrier to entry than any other market, esp. in the EV market, which is going to favor the homegrown options. The current trade war isn’t going to help Tesla. My prediction is that Tesla remains a novelty brand in Asia. Japan is similarly capable of taking care of its own market, and I wouldn’t want to take on Toyota when it comes to exports to South Asia, Africa, etc.

> China has a higher barrier to entry than any other market, esp. in the EV market, which is going to favor the homegrown options. Tesla is already positioned ahead of other auto makers with the construction of the Gigafactory 3 along with a deal with the Shanghai government to build a wholly-owned local factory (a notable exception).

Not ahead of Chinese automakers. And Tesla is paying for the privilege of that foothold. Meanwhile, Toyota is firing up battery supply in Thailand. Not to mention that Panasonic and Chinese suppliers are the real source of Tesla batteries.

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

#219

Post by loosescrews »

saagarjha wrote: post #41
eclipxe wrote: post #31

Earlier quoted context omitted.

OP is incorrect.

Do you have more information about this change, or lack thereof?

Green and white decals expired January 1st, 2019. Red decals, which were first issued in 2018, are still valid. Vehicles which were first issued decals in 2017 are eligible to upgrade to red decals. The current decals being issued are purple, but it is unclear if they are only for vehicles being issued decals for the first time or if they can be issued for upgrades requested now.

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

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

#220

Post by cjhopman »

gibolt wrote: post #208
clouddrover wrote: post #203

Earlier quoted context omitted.

So you're arguing that Hyundai beats Tesla on price and efficiency even when Hyundai's not really trying? What will happen to Tesla when Hyundai really tries?

The quality also comes nowhere close to a Tesla. While it makes a good commuter car, it is strictly not on the same playing field as a model 3, other than price and propulsion method.

It's not nearly on the same playing field as the model 3 in regards to price.
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