Zhelko Dimic
Careful bull
You know it takes $500M for decent US national advertising campaign? And that's only US.
Of course you don't have to start with that, but if you want to make an impact that's what it takes.
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Of course you don't have to start with that, but if you want to make an impact that's what it takes.
“The longer you wait to fire someone the longer it has been since you should have fired them”
JRP3
Hyperactive Member
Until the site scraping bots start running OCR on every image, it's an effective way to reduce off-site unauthorized quoting.
It sounds to me like Tesla will be starting their capex spending for Model 3 manufacturing improvements, Semi, Roadster, Model Y, etc (their future products) in Q1. Profits close to break even are no surprise when they have this ambitious product roadmap.
Thanks for your insightful post DaveT. I remember seeing a comment from Elon in Shanghai, saying Tesla will sell the Model 3 now (absorbing the import fee and taking a hit to profitability in the short term) at the same price as when they are building it in China. Hopefully that helps with demand by removing the need to wait. I also think they want to get the Model 3 in the China market as quick as possible. It sounds like there is increasing competition in China and getting to market faster would be good for the long run.
Elon was keen to emphasize during interviews in China after the Shanghai groundbreaking, that only the base (and maybe MR?) versions will be made in China. LR and LR P stays in Fremont so these will not get cheaper, no reason to wait. You could argue Chinese people waiting for SR could delay so that should get cheaper once locally made, but that has zero impact on Tesla. First, they are not even making that car yet, second, they probably won't be able to keep up with demand for SR with or without China. It is clear from their Q4 disclosures and the current relatively mediocre EU order numbers, that hundreds of thousands are holding out. Not cancelling, but waiting for cheaper variants.
Do they do ML and language translation on images via web scrapers yet?
Is this due to going through withdrawal now that Unfortunate Events has ended on Netflix?
Brando
Active Member
$44,000 why sell Model 3 for less than this, when export market can buy up +$44,000 vehicles
Tesla, of course, knows day by day if demand drops. Seems Q1 is often lowest of the year, right?
Many ways to spur demand. Ads seem the worst option to me. As Elon has said many, many times - best to make/improve the compellingness of your product vs wasting on Ads.
Seems around the world, any time cost to buyer goes up, demand drops - no surprise here.
Tesla, of course, knows day by day if demand drops. Seems Q1 is often lowest of the year, right?
Many ways to spur demand. Ads seem the worst option to me. As Elon has said many, many times - best to make/improve the compellingness of your product vs wasting on Ads.
Seems around the world, any time cost to buyer goes up, demand drops - no surprise here.
Tesla cutting S/X production is weird to me.
Demand really starting to look like an issu.
Demand really starting to look like an issu.
Nah, drop the 75 kWh to differentiate S/X from 3 (which has better margins at that price point). 100 kWh had better margins than 75 and cutting a shift improves that further. Lower production frees up paint and stamping capacity.
RobStark
Well-Known Member
Tesla's first ads will receive lots of coverage.
I don't think they need a campaign to have an impact.
I guess they need to target people that don't watch Youtube or search for car information online.
Like advertising on the Golf Channel and Hallmark Channel.
A lot less than $500M will do.
You are not trying to convince Mercedes owners to buy BMW.
Or switch from Coca Cola to Pepsi.
You are trying to reach potential buyers who have no idea what Tesla is, unlike BMW,Mercedes, Coca Cola or Pepsi.
Buckminster
Well-Known Member
I like the philosophy of no ads but it is certainly now a false economy. They could be selling more high margin products through ads.
davecolene0606
Member
aand that’s good, solid cash flow (catching breath) to establish a base for next gap up events.
Mostly, yes to ur expectations as well. WS certainly doesn’t reward for this but, I think basis for steady climb is being laid with a few outlier possibilities for gap ups in 2019 crystallizing.
Cheers!
Fire Away!
Why is Model S demand stuck at 50k (or slighly less) a year when Tesla has improved the car so much (and included previously paid options as standard) over the years? In other words, Tesla has made the Model S cheaper in a sense by drastically improving performance and features, but demand hasn't increased. Why?
Brando
Active Member
PRODUCTION is limited to ~100,000 Model S/X per year [maximum Fremont can make]
These Model S/X do cost ~$76,000 +options +sales tax +license fees +insurance - and Tesla out sells all of the competition
Large luxury cars - U.S. sales by model 2018 | Statistic [no Model X listed]
Tesla Model S Crushes Large Luxury Car Competition (H1 2017 US Sales) | CleanTechnica
Do your own google searches for better or more specific details.
Goal is [and should be IMHO] to make Model 3/Y cheaper and NOT Model S/X.
Model S is the #1 selling luxury car.
and for over $80,000 I suspect Model X may well be #1 seller too.
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