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.
Tesla will have to compete directly with Chinese e-car manufacturers. Even with a tariff and Tesla having a plant there; it will be next to impossible to compete with the Chinese. I’m not sure if Tesla will be making cars for sale there or here or both.
They’ve been doing it a while now too. The only real question will be about quality and design. If they are on par with Tesla or better; Tesla may not make it. Then there’s the recharging infrastructure. That’s a huge deal. Motels with recharging stations and just gas stations with recharging stations.
The current goal, if I’m not mistaken, is for e-cars to have a 7% market share in the USA by 2030. If they do well and battery technology catches up with the need for 600 mile charges and a quick 10 minute recharge; they may start making gains on the market share but only if they are reliable and affordable. Heck; regular gas powered cars are $30k new these days and that’s not for anything exotic. A new Mustang GT is $40+k starting price.
I wouldn’t be doing any investing in that market at this time but maybe someone else knows something I don’t. That next gen battery tech may come out tomorrow.
They haven’t met product goals for the low end. Musk is a lunatic and the folks who might have directed him to a rational decision left almost six months ago