£1 = $1.215

[BelfastEV]

could Tesla raise prices on people awaiting delivery ?

 

[dan223]

Extremely unlikely and price rises that have happened before are honoured for existing orders, I would also think they have factored in the exchange rate changing to.

 

[-DB-]

.....and they just dropped prices a few weeks ago. If anything, I would expect prices to come down again once the backlog is cleared.

 

[Yev000]

They don't have to convert profits to $

They can just spend the £ here to build more superchargers and service centers.

Or wait till £ is higher.

 

[Mark_T]

They don't have to convert profits to $

They can just spend the £ here to build more superchargers and service centers.

Or wait till £ is higher.

They do have to cover the cost of the cars they are selling in USD though...

 

[MrBadger]

I would be pretty sure that they would have some form of hedge mechanism in place. I use to work for an American Bank and I know for sure that the multi nationals had exchange rate hedging mechanisms in place for FX forwards and swaps.

 

[Mark_T]

I would be pretty sure that they would have some form of hedge mechanism in place. I use to work for an American Bank and I know for sure that the multi nationals had exchange rate hedging mechanisms in place for FX forwards and swaps.

You would certainly expect that, but this is Tesla, so who knows

 

[Jason71]

They don't have to convert profits to $

They can just spend the £ here to build more superchargers and service centers.

Or wait till £ is higher.

Profits? based on the Q2 results they lose about $4K per car

 

[leewillis77]

They don't (or "didn't") hedge.

"in our other income line, we saw $66 million reduction. This is nearly entirely due to foreign exchange, which we don't hedge."
- Tesla, Inc. (TSLA) Q2 2019 Earnings Call Transcript -- The Motley Fool

 

[Roy W.]

Certainly from my point of view the current financial turmoil with the exchange rates could mean a price increase in non-USA markets.

This was the main reason everyone was so shocked by the high price of the M3 here compared to what Elon was saying soon after the US launch. Then, I think he said on Twitter that we should expect the car here to start at less than £30k. But the US$ was at $1.43 when the car launched, now it’s at $1.21. And with our current political situation I can see it going lower still.

I don’t think this will affect any current orders, but if you’re deciding whether to order sooner or later, I think sooner would be prudent.

And don’t forget to use a referral code

 

[ivangr]

there would probably be a bit of a buffer in the profit on the car built in to cover exchange rate fluctuations.

 

[BelfastEV]

Profit !!??