Stock is down 6% in aftermarket, isn't this awful?
First, why does Musk set such optimistic expectations in the first place, only to dial them down later? Shouldn't Tesla take a more conservative approach to guidance and then surprise?
Second, it makes no sense that ramping up Model X will come at a sacrifice of 800 Model S deliveries per week. I think that is Musk-speak for "we can't update the Model S to keep par with Model X features, so Model S sales will slow down". That sounds closer to reality to me, explains the new referral program as a way to keep Model S sales afloat, and the dip in S sales is something that I've been fearing for some time. If Model S does not keep pace with Model X design and features on day one, Model S sales will fall off a cliff. I certainly wouldn't buy one knowing that the Model X has superior technology and newer design compared to S, and that a Model S redesign is probably around the bend. Tesla is stretched too thinly.
I am worried for Tesla based on anecdotal observations. Reports of falling service standards are on the rise. Software development is lagging woefully behind. Jerome Guillen, who has served to calm a lot of discontent and smooth over ruffled feathers, is nowhere to be found. Now Tesla is lowering delivery guidance for the year - guidance which many of us originally felt would be nearly impossible for Tesla to hit.
Are Musk and his team cracking?
I thought, as we get closer to Model 3, that Tesla would be optimizing its organization and focusing all of its ducks in a row to make possible a mass market vehicle. Based on what I heard today, and on recent history, it doesn't seem like Tesla is on that road. Maybe I'm looking at this the wrong way, but something doesn't feel right to me.
- - - Updated - - -
Let's let them release the comparatively simple autopilot software before anyone gets too worked up over self-driving Uber competition.
Based upon Tesla's timelines, this is at least 20 years away.
