I don’t understand why Tesla needs to rush deliveries at the end of every quarter/year. If they need to provide incentives to meet the expectations they’ve set then the market should realize that and price it in, exactly like this, so what’s the point?
Tesla shares tank after U.S. discounts doubled on key models
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Re: Tesla shares tank after U.S. discounts doubled on key models
#12Earlier quoted context omitted.
What does this have to do with anything sorry ? If the current price was warranted why would the price be lowered regardless of the output ?
Because the "current" price is always warranted based on supply and demand. If supply > demand, economics 101 says the price is too high.
It _could_ be good news for Tesla, in that it means they can actually sell to all of their potential customers. Being supply-side constrained is usually a bad thing for a stock’s share price.
Mind you, something’s inarguably up with the share price, even if it isn’t as simple as this discount.
Re: Tesla shares tank after U.S. discounts doubled on key models
#13I don’t understand why Tesla needs to rush deliveries at the end of every quarter/year. If they need to provide incentives to meet the expectations they’ve set then the market should realize that and price it in, exactly like this, so what’s the point?
Honestly you’ve hit on one of the dumb things about equity markets. In theory, markets shouldn’t care about lumpy numbers since you can always borrow to smooth out your returns. In practice, dips and spikes see unwarranted reactions every time so firms will smooth out any figure they can, including dividends.
Re: Tesla shares tank after U.S. discounts doubled on key models
#14I don’t understand why Tesla needs to rush deliveries at the end of every quarter/year. If they need to provide incentives to meet the expectations they’ve set then the market should realize that and price it in, exactly like this, so what’s the point?
It drives the price of most important product of Tesla, which is the TSLA stock.
Re: Tesla shares tank after U.S. discounts doubled on key models
#15[flagged]
To be fair, Twitter was treading water before Elon got involved.
Re: Tesla shares tank after U.S. discounts doubled on key models
#16Only for the next week.[1] Forget "discounts". Show me the final price as delivered with all fees and taxes included. [1] https://www.cars.com/articles/tesla-offers-7500-discount-on-...
> Only for the next week.[1] Is this an attempt at juicing Q4 financials? Is this normal among automakers, or is it just a short-term attempt to pump up sales numbers today, at the cost of sales in Q1? Or is this aimed at pulling in market share from competitors?
It's a used but not common practice in the North American car market. Toyotathon happens in December in order to dump old stock and increase sales during the last possible part of the year. Same with the December To Remember sales event from Toyota's luxury arm Lexus. Ford and GM don't usually engage in this unless they're axing the model anyways (Pontiac Solstice and Ford Taurus for example). Happy Honda Days is the only other one I can think of that's recurring. Mercedes-Benz and BMW are irregular with this practice, and BMW only does it with certain models when they do participate.
Re: Tesla shares tank after U.S. discounts doubled on key models
#17So wait, does this mean Tesla are finally making cars faster than they can sell them?
I guess so, but just because some sweet subsidies are coming January 1 so everyone is procrastinating orders to that date. In practice it’s just Tesla “chipping in” a bit of the profit boost it will get next year, to avoid ruining their quarterly sales metrics. Either way the TSLAQ crowd will have a field day with all the negative attention Musk is getting: they’re toast, they can’t sell without discounts, they’re no…
What is TSLAQ?
Re: Tesla shares tank after U.S. discounts doubled on key models
#18Earlier quoted context omitted.
I guess so, but just because some sweet subsidies are coming January 1 so everyone is procrastinating orders to that date. In practice it’s just Tesla “chipping in” a bit of the profit boost it will get next year, to avoid ruining their quarterly sales metrics. Either way the TSLAQ crowd will have a field day with all the negative attention Musk is getting: they’re toast, they can’t sell without discounts, they’re no…
What is TSLAQ?
From first google result:
> TSLAQ (pronounced "Tesla Q") is a loose, international collective of largely anonymous short-sellers, skeptics, and researchers who openly criticize Tesla