Tesla does not have dealers or inventory.
Tesla Drops USA Prices up to 20%
- Thread starter E365
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And, like me, the Model 3 refresh.
That won't change who he is
I said right now. God only knows what is going to happen a year from now. The competition is growing, and has Tesla concerns about the tax credits too. If there were no concerns prices would not have been cut. That's usually how business works.
I think as is, he will put additional pressure on used market and of course create demand for new Teslas
and yes the greens tax credit it will be up to $7.K and not necessary everyone would qualify for the full amount
True, but that's what I like about the guy. I don't like his company or his cars, but I find him entertaining, and he tells it like it is.
I think the inventory issue is changing. If you look on their website, they are starting to keep a small quantity of popular colors/configurations on-hand for immediate delivery.
He tells it like he thinks it is.
I'm not convinced he has a firm grip on reality. And I generally don't listen to the opinions of ******es.
Why? His Twitter posts have allowed him to sell his mansions and live rent free in the minds of his detractors.
Regardless of what you think about Musk, you have to agree he "owned" Twitter years before he bought the company.
I agree 100%, but I like him telling it the way he thinks it is, and he is very entertaining.
Point in time is a blip on the radar. How you perform long term is what counts. The competition is tiny in comparison.
Agreed; lower demand is a reason to cut prices. So is squeeze the competition. And the competition already loses money on their EV business.
To your point, right now, the Model Y and Model 3 outsell most other cars of any kind, not just EVs. And growing.
What happens to Camry, RAV4, CR-V, Corolla, Civic sales when the prices of the Y and 3 drop like this? Teslas just became even more attractive; a percentage of potential new car buyers will reevaluate their plans.
The expensive Teslas are already close in sales and win in many markets. What happens to already declining BMW sales?
There will be brand loyalists to prop up legacy car sales. Ask younger people what cars they want... Everything changes.
Here's the rub, if Ford and the others are losing money in the EV business [which I believe they are] there is no need to cut prices, especially in the example of the Mustang you sited. Inventory build up and price cuts are telling me something is amiss. The current stock price seems to be telling the same story. No worries, Tesla isn't going belly up anytime soon.
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Why? Because everytime he opens his mouth his stock goes down. He's done some very good things, and he's done some pretty "odd" things (I'm being charitable there). Strictly from a financial persepective, anyone who holds stocks in his companies does better when he stops posting on twitter.
IMO there are several things happening here.
1. Competitors are beginning to come on the market in significant numbers. For most of it's existence Tesla has not had any real competition.
2. Tesla's production capability has gone way up as their new factories have come on-line.
3. They now have some unsold product sitting that they need to move.
4. They were overpriced to begin with.
5. The market for battery EV's is limited. They are not for everyone (I won't buy one). Let's face it, battery EV's are primarily an urban vehicle, most people living in rural areas are not going to buy one and there is a LOT of rural in America (IMO this is the biggest "fly in the ointment" for the big auto manufacturer's who plan to stop ICE production). Furthermore, you can't get a Tesla repaired at "Joe's Garage", if you don't live near a Tesla service facility (a few hundred of them in metro areas only) you are going to be SOL when it breaks. By contrast, the big three have thousands of dealers in almost every town in America with a population of 5000 or more.
1. Competitors are beginning to come on the market in significant numbers. For most of it's existence Tesla has not had any real competition.
2. Tesla's production capability has gone way up as their new factories have come on-line.
3. They now have some unsold product sitting that they need to move.
4. They were overpriced to begin with.
5. The market for battery EV's is limited. They are not for everyone (I won't buy one). Let's face it, battery EV's are primarily an urban vehicle, most people living in rural areas are not going to buy one and there is a LOT of rural in America (IMO this is the biggest "fly in the ointment" for the big auto manufacturer's who plan to stop ICE production). Furthermore, you can't get a Tesla repaired at "Joe's Garage", if you don't live near a Tesla service facility (a few hundred of them in metro areas only) you are going to be SOL when it breaks. By contrast, the big three have thousands of dealers in almost every town in America with a population of 5000 or more.
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I am not privy to the Tesla boardroom. But my guess is the Tesla price drop is a business decision based on numerous factors.Here's the rub, if Ford and the others are losing money in the EV business [which I believe they are] there is no need to cut prices, especially in the example of the Mustang you sited. Inventory build up and price cuts are telling me something is amiss. The current stock price seems to be telling the same story. No worries, Tesla isn't going belly up anytime soon.
If GM or whoever brings out cheap EVs and Tesla cannot get the Model 2 out, lowering prices puts GM in a bind and Tesla in a better strategic position.
Tesla has been notoriously late in releases. Using a product they already have buys them time.
Part of the "inventory build up" is due to logistics; getting the cars to regions. Tesla is committed to a more linear production rate which lowers production and delivery costs.
IMO a grossly overpriced stock coming down is a good thing, but I'm not a Market expert, so what do I know? It is also my opinion the stock was way overvalued because of him opening his mouth previously. Just because the shine is coming off of him in the minds of some people because he expresses differing opinions doesn't mean he is wrong, or that he should be censored because the stock price might drop.
Or we both might be completely off base, and the stock dropped simply for the market conditions wag123 mentioned above. Probably a bit of both.
I'm not on the board either. I deal with the facts as they are presented. The fact is they cut prices in China, and now the US, another fact is the stock price has been falling. Only the chosen know the reasons why, anyone else is guessing, and expressing their opinions.
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#6 Possible global recession.
That too, I forgot about that.
I don't know where you get your information, but it's simply incorrect on this point based on open source sales numbers.
Toyota sells about as many vehicles in ONE typical year going back 20 years (about 2 million per year) as ALL Teslas sold worldwide since inception, (about 2.6 million as of March 2022). The Camry alone sells about 350,000 annually, and there's about 6.5 million Camry's sold since 2005.
Further, the recent Tesla jump reflects about a 75% increase in sales in the latest reported year I found, in no small part to huge tax credits. Toyota is doing that in spite of uneven playing fields and comparative disadvantages, e.g. Toyota isn't the benefactor of massive tax credits given to Tesla customers. Note, ALL EV sales reflect a total of 3% of the entire auto market.
Typical consumers of Toyota/Honda, etc. are not drawn to Tesla as they aren't in the same market place.
Corolla: $22,000
Civic: $25-30,000
Prius: $33,000
Sienna: $36,000
RAV4: $35-40,000
Ford F150 XLT: $42,000
Toyota 4Runner: $45,000
As noted on the original post, the entry Tesla 3 is $45,000 (and they skyrocket in price from there, quickly doubling the price of economy commuter ICE vehicle). A Tesla 3 is much as a nice gas truck or a 4Runner, XTerra, etc. I imagine there's also some home modifications that are needed to plug it in, but I don't know what other costs are involved. Oh and the Model Y, priced at around $55,000, is about double these basic ICE car costs and still tens of thousands higher than really nice gasoline cars, even after the tax rebate. As a consumer who purchases vehicles in this price range, I have zero desire for a Telsa, none, whatsoever.
https://www.goodcarbadcar.net/toyota-us-sales-figures/
https://moneytransfers.com/news/content/how-many-teslas-have-been-sold
IMHO these recent sales cuts reflect a population getting more educated on the drawbacks of EVs (they aren't as reliable or easy to maintain and other broken promises), it's becoming less of a "virtue signaling tool" as it has been given it's damage to the environment, and other drawbacks, we're entering a global recession/depression, interest rates are higher, etc.