Pretty good Q2 for Tesla.
What does @Pinhigh27 think of PriceCutAggedon now that the dust is settling?
Ya the numbers are so good the stock is down 7% today. Okie doke. The stock reflects people’s perception of the business and its valuation so I would say the numbers were not good.
Beating extremely low expectations is not a good thing. They don’t make nearly as much money as they used to. Margins are collapsing and their growth is also diminishing. Nothing has fundamentally changed. The company can’t grow 50% YoY forever , it’s basic math.
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Pattern recognition says this is Tesla’s MO and always has been.
Decrease price to move metal, especially soon to be outdated metal.
They will follow in Toyotas footsteps pretty soon. Mass volume over margin
They are already there.
Skip to 1:30-2:15
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Except TSLA is up since the price cuts.
The point is you doubted their strategy and in numerous posts questioned the “math” of it.
Again, increasing market share means something especially when being challenged by the competition.
I hate that almost every car in my area is a white Y, but that just shows how effective their “marketing” is.
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Well, just keep in mind that the vast majority of individuals that people will know in their lifetime will never be accused of being “smart” in any way.
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What’re the odds Rivian joins the price cut party? Tough spot to be in. Need to move cars and maintain margin but after the Lightning cut, their price looks even more out of whack.
It’s flat to slightly down in 18 months( note how I’m not using priors peaks to paint a false narrative of a drop) but however you want to employ creative accounting to look like everything is fine.
Their math is bad. EPS is significantly declining and they are simply making less money as a company. Keep buying the stock idc. They are following the steps of every legacy auto company, which their valuation basically rests entirely on not doing so
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So many white Model Ys. Most manufacturers offer like 6 free colors and 2 premium. Tesla offers one free color and the rest are $1000. If Tesla just made all colors free, we would have some diversity.
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@Pinhigh27 was saying they are down on the recent earnings report which seems basically right.
Tesla’s fundamental problem is they can’t be a normal car company. To justify a market cap 3* that of Toyota they need to either be blowing the industry out on margins per vehicle and/or be selling way more vehicles than Toyota.
Some people hate Tesla. Others ask what does Tesla have that justifies them being worth more than basically all the other legacy automakers put together. They just aren’t justifying their valuation with the margins on their vehicles as they currently exist.
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This being said, clearly EVs have been a massive step forward in car performance , notably straight line performance but also possibly reliability , emissions ( providing the power is generated cleanly) and efficiency. Undoubtedly Tesla as a company has lead the way in these steps , so I am thankful for this as clearly they basically forced all other car companies to take electric seriously when so many hesitated to do so.
With that being said, the company is still overvalued AF and FSD is incredibly dangerous , should not be allowed to operate.
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Yes… but I was addressing his previous comments when he was questioning the initial price cuts and focusing on TSLA’s stock valuation (it hit a low of ~$100 in December).
Would Tesla have sold as many units or pushed that much revenue had they not did the price cuts? And where would TSLA be if they did not?
I am somewhat in agreement with this.
But it has to start somewhere… I just prefer to drive my own car. Disclaimer: Never used ACC in our Y but did use it in the Ioniq 5 recently and I can see the appeal.
Wait… who is applying “creative accounting” here? Why did you pick 18 months as your timeline… which just coincidentally is when TSLA was :“flat to slightly down”?
Your criticism of this price cut was very vocal in January when they did them, TSLA was just under $140 then. Where is it now? If your criticism was correct, shouldn’t Q2’s report be much worse?
You have to see by now that the price cut was a good move… do you think their Q1 and Q2 reports would have been better if they didn’t cut prices?
Like I said, I hated Econ in college but the “math” says if inventory is higher and costs are lower… cutting prices is the right move.
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The stock went to nearly 100 shortly after, was it the right move then in your opinion ?
I think it was necessary ie there was nothing else they could do. This is hardly controversial. When you aren’t selling cars you can’t raise prices .
You say I’m cherry picking when you are cherry-picking yourself. You’re picking a totally arbitrary interval to say they made a good move, when in reality it was one they were totally forced into. When exactly did I say it was dumb to cut prices?
Q2s report is bad, idk how you haven’t figured this out. It’s only “ good” compared to a bunch of purposefully conservative estimates by analysts who are mostly long Tesla. If they say we expect 1 eps and it comes back 0.9 everyone loses their mind. If they project 0.8 and it comes back 0.9 then it’s the greatest company ever .
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January. Check this very thread.
No I did not. Find it. I have said the same thing this entire time . They were facing demand problems and the only way to sell more cars was to cut prices. This is extremely clear
Here is what I said back then.
Later on I said in an ideal world they wouldn’t cut prices, ie if they didn’t have a demand problem ( though obviously they did which forced their hand) so not sure if that is what you are misunderstanding?
I never once said they shouldn’t cut prices. I said that they had to, bc of lack of demand