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Tesla's Price Cuts Signal Major Demand Problems

Seeking Alpha2023-01-17

SummaryThis week's price cut could lead to a per car margin reduction of over 50% in the US.Tesla's backlog has likely been declining since the summer, and used Tesla values had dropped ~15% before ...

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  • YJ Lee
    ·2023-01-18
    Ok
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  • Doris11
    ·2023-01-18
    Like 
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  • J90
    ·2023-01-18
    Dccf
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    • Doris11
      ok
      2023-01-18
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  • Calvinq
    ·2023-01-18
    TSLA 🚀
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  • Slee49
    ·2023-01-17
    Ok
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    • J90
      Fcc
      2023-01-18
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  • plasticbag
    ·2023-01-17
    Ok
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  • 宇安
    ·2023-01-17
    Ok
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    • crtyn
      Ok
      2023-01-17
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  • Guavaxf30
    ·2023-01-17
    The results coming up may not reflect margin erosions yet as the price of cars in the period before will likely still show high margins. But it will be interesting to see what the forward forecast will be.Today's pre-market rally is pretty impressive but may be a short-squeeze effect in action. 
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  • sydboy007
    ·2023-01-17
    The prices being paid to Tesla for current deliveries were not at the most recent high prices Elon has admitted the prices were obscenely high for the model Y, but it was the only way to keep the order backlog from being multiple years. As the price of Tesla's vehicles falls their TAM increases exponentially. These prices reductions are mainly due to falling costs. The margin impact is likely minimal.  Likely Tesla competitors will be driven out of business, which will free up supply to Tesla, helping them increase production in an unconstrained manner. It's funny that the commentary is only Tesla has a demand issue, when you look at every auto manufacturer has declining sales except BYD, which now faces model 3 pricing at levels destroying demand for it's most successful electric v
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  • Fiona888
    ·2023-01-17
    Yes
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  • ALi_BaBa
    ·2023-01-17
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  • OJC
    ·2023-01-17
    Ok
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    • ALi_BaBa
      Like
      2023-01-17
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    • OJC
      Ok
      2023-01-17
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  • Karen333
    ·2023-01-17
    Tesla is now leveraging off its economies of scale to squeeze and price out competitors. This will further embed its first mover advantage.  This was always the plan. You don't leave prices high when competitors are coming in cheaper. By eliminating providing price advantage they will consolidate the market. This is a great development for Tesla.
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    • gcwehc
      k
      2023-01-17
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    • vivo8787
      Ok
      2023-01-17
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    • StaQ
      tks
      2023-01-17
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  • LimBT
    ·2023-01-17
    Ok
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  • MrHuattt
    ·2023-01-17
    Ok
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    • MrHuattt
      suee
      2023-01-17
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  • PowerTrade
    ·2023-01-17
    Ok
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  • TeslaLegend
    ·2023-01-17
    Nice 
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  • Vincentan59
    ·2023-01-17
    Yes 🤪🤪🤪
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    • Vincentan59
      🤑🤑🤑💪🏼💪🏼
      2023-01-17
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