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Tesla shares tank after U.S. discounts doubled on key models

reuters.com

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Re: Tesla shares tank after U.S. discounts doubled on key models

#31

Post by eecc »

jacquesm wrote: post #21
eecc wrote: post #8

Earlier 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…

That may be so, but the effect on the stock price is pretty real.

Sure, also Musk’s behavior on Twitter is bringing a lot of negative press, and the fact he liquidated a ton ton of host TSLA stock to finance the operation.

But indeed markets are not exclusively driven by rational thinking, just look up “head and shoulders” in the context of stock charts. WTF is that? Horoscopes? SMH

Re: Tesla shares tank after U.S. discounts doubled on key models

#32

Post by tacker2000 »

jacquesm wrote: post #22
Tanoc wrote: post #16

Earlier quoted context omitted.

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…

Do their stocks respond in a similar way?

Probably not, but since TSLA is a highly traded, and somewhat overpriced and volatile stock, it makes sense that every little piece of news will make it move.

Re: Tesla shares tank after U.S. discounts doubled on key models

#33

Post by alkonaut »

dehrmann wrote: post #15
swarnie wrote: post #10

[flagged]

To be fair, Twitter was treading water before Elon got involved.

It was treading water but keeping the head above the surface. Now in the next part of the analogy someone showed up with a lead lifebuoy.

Re: Tesla shares tank after U.S. discounts doubled on key models

#34

Post by hooande »

eecc wrote: post #31
jacquesm wrote: post #21

Earlier quoted context omitted.

That may be so, but the effect on the stock price is pretty real.

Sure, also Musk’s behavior on Twitter is bringing a lot of negative press, and the fact he liquidated a ton ton of host TSLA stock to finance the operation. But indeed markets are not exclusively driven by rational thinking, just look up “head and shoulders” in the context of stock charts. WTF is that? Horoscopes? SMH

Markets aren't rational, but they also aren't stupid. if this is really just a "pre-discount" on the January subsidy, wouldn't that be priced in? It could be less informed retail investors panic selling due to Musk related news, etc. But a panic sale is a panic sale, regardless of the cause.

And, why would they need to do this if the subsidy is likely to kick in on January 1st? They're offering this major discount to increase sales in the two week period between now and the new year? From what I can see it isn't even 100% certain that they'll qualify for the $7,500 subsidy. Maybe there's something about corporate accounting or whatever that I'm not understanding here.

Re: Tesla shares tank after U.S. discounts doubled on key models

#36

Post by jacquesm »

eecc wrote: post #31
jacquesm wrote: post #21

Earlier quoted context omitted.

That may be so, but the effect on the stock price is pretty real.

Sure, also Musk’s behavior on Twitter is bringing a lot of negative press, and the fact he liquidated a ton ton of host TSLA stock to finance the operation. But indeed markets are not exclusively driven by rational thinking, just look up “head and shoulders” in the context of stock charts. WTF is that? Horoscopes? SMH

They're a lot more rational now than a few months ago. Or are you (still) on the buying side? If so then you have more guts than me.

The whole Twitter saga has me worried about Musk's mental health. Either that or he should rename himself 'CLO' (Chief Liability Officer).

Re: Tesla shares tank after U.S. discounts doubled on key models

#37

Post by jacquesm »

bell-cot wrote: post #35
geewee wrote: post #26

Oh wow, I read this headline as Tesla unveiling a new tank after some sort of military discount was created. First cybertruck, now.. cybertank?

With a problematic "Full Self-Fighting" option.

A looped barrel that aims straight at the threads. The tank equivalent of a footgun. Aka TurretLoop, now for $420 at your nearest Tesla dealer, pre-orders only while stocks don't last.

Re: Tesla shares tank after U.S. discounts doubled on key models

#38

Post by nitwit005 »

rlt wrote: post #11

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?

This happens in many industries. I've worked at two companies where customers looking for a deal ordered at end of quarter.

Investors want a happy smooth graph of increasing sales every quarter, for no real logical reason.

Re: Tesla shares tank after U.S. discounts doubled on key models

#39

Post by jacquesm »

moomin wrote: post #12
hervature wrote: post #7

Earlier quoted context omitted.

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.

That's some pretty interesting mental gymnastics right there. It could be good news, but most CEOs would interpret their stock price tanking as a result of having too much inventory as bad news. And those other brands can usually sell to their dealers so they can recognize the profits, Tesla can't do that hence these consumer discounts. And it isn't the people that wait for next year that are buying Tesla at this discount either, but it is the people that bought one two weeks ago that feel screwed by this extra discount that they have foregone by supporting Tesla in what arguably must have been one of its most difficult times so far.

Re: Tesla shares tank after U.S. discounts doubled on key models

#40

Post by jsemrau »

bamboozled wrote: post #4
moomin wrote: post #3

So wait, does this mean Tesla are finally making cars faster than they can sell them?

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 ?

There is an assumption that Tesla has peaked as competitors are successful in gaining market share. Rivian's successful of Amazon launch [1], Lucid is starting in Europe [2], and NIO is opening up in Europe. Is Tesla, given that scenario, really a 372B company (as of Dec 23rd) or rather a 45B company like Ford and GM?

[1]https://app.finclout.io/t/9Q2MQ8d [2]https://app.finclout.io/t/mOaRRwY

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