Tesla US/Canada were expected to follow the decrease in China and other markets. The profit margin of those cars is insane and all they did is trim the profit to pre-madness days.
Model Y Performance is actually cheaper its ever been from the looks of it.
The decrease in demand of Tesla can be directly correlated to increase of other comparable offerings. People also want something different once in a while and may settle for inferior but less common and completely different product.
Eh, I still think there is plenty of demand for Tesla(s).
Their biggest problem now is the DTC model … legacy manufacturers can offload their units to the dealer network, thereby shedding the holding costs + they can game the system and punch(ask dealers to put units into loaner/demo/drac) cars to create the appearance of sales.
Tesla lacks the dealer network to work the system, as WS and the traditionalist investor prefer.
Edit: They also have a pricing problem, which these most recent rounds of cuts will likely not solve.
I work for a Tier 1 supplier and let me tell you that there’s nothing these executives can do about China, Brazil, and others not supplying us with certain raw materials. It seems to rotate through different materials. Once one thing clears up there’s a supply chain issue wither something else.
In much of the US there is limited appeal to Tesla’s vehicles, and EV sales in total still represent - what - 5% (?) of the market.
Plus Tesla shares that market niche with an ever-expanding list of competitors.
Tesla dropping their price by X is equivalent to a dealer discount + manufacturer incentive of X on another brand (no matter how such other reference vehicle is powered).
Both discounts and incentives are starting to come back, so the entire market is tipping back toward the consumer’s favor… but I don’t see general demand for new vehicles going into freefall in Q1.
I think you are underestimating the damage Elon did to his brand with his Twitter shenanigans. Michael Jordan famously said of avoiding politics, “republicans buy shoes too.” Liberals don’t just buy cars too, they were the ones buying tesla’s and now they don’t want them. Unless rednecks pick up the slack Tesla is selling to a shrinking market.
I don’t think it’s wise to make claims based on the actions of one company. Honestly, I just think Tesla pricing is returning to where it needs to be, those things were massively inflated in price and there was a time when Tesla would increase price by 2k to 30k every month for a year. Anyone who bought Tesla in the past 6 months is now feeling the burn.
This is just the free market at work and I see nothing wrong with that. With that being said, it’s an absolute terrible time to buy a car or house.
You should also consider some of those price cuts targeted to put the price tags below the ev incentive threshold, especially Model Y.
I agree that the market dynamics started shifting, and hope it will be more consumer friendly, but still the interest rates makes most transactions harder to swallow.
That’s why I say the canary in the coal mine. If you listen closely, there’s one bird singing a song in a faint distance. Regardless of how one feels about Elon, he’s a genius. He certainly isn’t punting $7,500 x 400,000 (=$3B give or take) unless he feels it is necessary. As someone else pointed out, he’s also undoing price hikes and changes from 2022. My point is others need to follow suit or Tesla becomes more attractive to the consumer. Also @IAC makes a simple point; people will look the other way with their political views when their Model 3 or Y starts looking like it has more value in price compared to something else.
And for anyone who doesn’t think a company that sells 2 out of every 3 EVs in this country has major influence on pricing, I have to assume that individual can’t be persuaded.