Elon claimed they had a chance at 100,000 a few days ago. Based on that this isn't meeting expectations.
Also, the revenue is what matters and the breakdown of 3 vs S vs X indicates they will have significantly lower ASPs and probably will post a YoY revenue decline. That's not great.
Are people really unable to tell the difference between when something is possible versus when it's likely? Maybe it's just my perspective as a physicist, but the gulf between those two things can be immense.
Considering the factory coming online very soon, I think the situation is looking pretty good, actually.
Why do we think they are production limited instead of demand limited? They’ve had to lower ASPs for close to 5 consecutive quarters. That’s not indicative of production constrained.
Having to ship cars to the other side of the planet to the largest electric car market on the planet and pay super high import duties while not having access to local labor (etc) seems like a pretty thorough ball-and-chain on prices compared to what GF3 will enable.
Additionally, they have a significant update to the high end Model S & X coming (three motors), the 2020 Roadster, the Model Y, the Semi, and the Pickup all announced, some of which likely has suppressed demand for their current offerings, which they've been too busy ramping up Model 3 production for to ship. So I think demand is not a problem. And considering they're doing this at a time when their EV credit is nearly completely gone and gas prices are at a near-all-time-low, I think they're doing remarkably well.
...especially considering they don't have a moderately-priced SUV/truck/crossover available yet. None of the top 6 best-selling cars/trucks in the US are actual cars. Model 3 is doing remarkably well considering it's not an SUV, crossover, or a truck.
This really isn’t answering the question. If a company is supply constrained, why would they be reducing prices? That’s literally the exact opposite of what should happen.
The decrease in list price is to offset the decreasing tax credit.
E.g. A $60k Model 3 in 2018 with a $10k credit in MA (State + Federal) is now a $50,500 car with a $1,875 credit. (Federal and no State)
Economically speaking the tax credit was always effectively a payment from the government to Tesla. The real consumer price is basically unchanged over the last year.
Most of the move was after hours when this report was released. Tesla was only down .6% during the day, despite the higher alpha and the market being down 2%.
No, then it’s “more than expected”. Wall Street has been a bull market for 10 straight years. If anything analysts are considerably charitable to companies
… and not entirely unreasonably so, given that Elon Musk teased that number as late as last week: “We have a shot at achieving our first 100,000 vehicle delivery quarter,”
Edit: Wasn't aware of the 100k expectation.