Tesla stock is down $45
Is 7% really catastrophic?
I would stand in a long line in order to NOT buy a Tesla.
The goal is to get the price of the base Model 3 down to 35K as promised, and to compensate for the loss of customer rebates. Tesla’s competitors will eventually have to do the same. The good news is Tesla is going to continue to reduce its costs and be more efficient.
I think the reason for the stock drop is that their profit won’t be as good as last quarter and how that could affect their bond payments.
Who Cares?
I’d rather drive a Falcon than a Tesla!
The Bay Area is still crazy about Tesla, I probably see a hundred every day. But then they also vote Pelousy in every two years.
Some excerpts from Musk’s internal memo:
“Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months,”
“Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way.”
Musk also noted that, while fourth quarter deliveries were “almost as many cars as we did in all of 2017”, the group still needed to reduce prices in order to make products that were “cost-competitive with fossil fuels.”
“Right now, our most affordable offering is the mid-range (264 mile) Model 3 with premium sound and interior at $44k,”
“The need for a lower priced variants of Model 3 becomes even greater on July 1, when the US tax credit again drops in half, making our car $1,875 more expensive, and again at the end of the year when it goes away entirely.”
Bottom line: People prefer cars with reliable internal combustion engines. They voluntarily do not buy electric vehicles. The liberals will try to outlaw internal combustion engines, tax and restrict ownership and promote electric vehicles. Big fight over the next 25 years. Tax credits were the initial sweetner, harsh coercion comes next. Tesla’s future depends on government coercion of consumers.
7% is nothing
Funny how tough it is to run a company without Washington shoveling wads of cash your way.
At least this is just Musk’s car company.
I’d hate to get half way to Mars and get news like this.
Tesla seeks significant automation of production. That means doing everything they can to reduce headcount, with no surprise that the result is reduced headcount.
Yes, loss of tax credits is a hit. One reason to not have them, which Musk has acknowledged. Insofar as they existed, no surprise people used them.
Yes, electric cars are desirable. Maybe not for everyone, but not for nobody either. If they can hit break-even with ICE vehicles, crossover purchases will be significant.
I had an EV for a couple years. Y’all naysayers don’t know what you’re missing.
Musk hasn’t met his production rate on the low end car. He is the worst kind of boss to work for......unrealistic, egocentric, and sporadic in his behavior
Tesla has been blown!
No it isnt.
Government isnt set up to make profits or useful goods. Government doesnt produce anything.
Further government isn’t supposed to be enormous and employ as many people as it possibly can and keep growing.
CNN sounds delighted. What do they have against Tesla?
hardly ‘catastrophic’
Despite?
I would say that the new factory would be associated with lower employment numbers, but in this case the new factory is probably just a fiction. Musk makes big announcements when he knows bad news is coming. It is part of his stock price manipulation strategy.
Tesla doesn’t make money by selling cars, Tesla makes money by selling stock.
If I were a Tesla investor, the China factory would make me very nervous. If Tesla starts producing in China, the Chinese will start stealing his technology from Day 1. Within ten years, the Chinese will be selling the same technology at half the cost.
This has only happened the last thousand times in a row, so it might not be fair to call it a pattern.
New Tesla 3 is now $45,000.
Compare to (say) a new 2019 Toyota Camry LE at $23,500.
Diff = $21,500 / $2.50 gal reg Unleaded = 8,600 gals of gas.
Say you get 25 miles/gal with the Camry.
8,600 * 25 = 215,000 miles.
Yeah, I think I’ll take the Camry ... plus I’m sure it will be worth more $$$ after 200,000 miles then a Tesla 3.
“Just saying ...”
Elon Musk reminds me of Boone Pickens the “United States is the Saudi Arabia of wind energy” barker of the 1990s. IOW, he is a hi-tech snake-oil merchant.