Earlier quoted context omitted.
Wait, what? I was not aware of this. I guess driving in the carpool lane today was not a great idea…
OP is incorrect.
Do you have more information about this change, or lack thereof?
Tesla cuts prices as Model 3 deliveries narrowly miss estimates
41–50 of 267 posts
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#42Tesla 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.
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.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#43The 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
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.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#44The 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.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#45The 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
Wouldn't they be used as self driving pods in future? 50k is low end for that.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#46Earlier quoted context omitted.
Demand ceiling for the US or for the world? I suspect they've hit the former, but that there's a lot of demand in the latter.
The market for EVs is expanding. As Tesla starts shipping worldwide they will find the sweet spot for the US. Big takeaway here is they are very profitable producing at current rates. As they bring out new models they will continue to grow at 30-50% per year.
> "they are very profitable producing at current rates"
You don't know that. They had one big, profitable, immaculate quarter in Q3 by pulling all demand forward and using every accounting trick in the book to show profit. There is no guarantee there will be another quarter like that. In fact, if Tesla's earnings history shows anything, it's that losses will be even bigger than before.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#47Earlier quoted context omitted.
> 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... "Tesl…
I clicked on the title ready to judge it as click-bait like yourself, but I think the text makes a good point that the majority of reservation holders seem to be willing to wait for their $35,000 Model 3s. Too bad they didn't get their $7,500 tax credit though.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#48The 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.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#49Earlier 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
I think OP's point is that Tesla isn't just a car company but they're also an energy storage & solar producer. While the car biz may have be leveling off (and that's not accounting for the semi & modely Y launching this year and next respectively), their energy storage is starting to take off along with the solar roofs so this provides huge growth opportunities in the future.
Re: Tesla cuts prices as Model 3 deliveries narrowly miss estimates
#50Earlier quoted context omitted.
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... "Tesl…
I clicked on the title ready to judge it as click-bait like yourself, but I think the text makes a good point that the majority of reservation holders seem to be willing to wait for their $35,000 Model 3s. Too bad they didn't get their $7,500 tax credit though.
My main problem is with the title of the article... more than the article.