'Tesla shares sink as car deliveries drop'

[rooter]

Tesla shares sink as car deliveries drop
"In the fourth quarter, Tesla delivered 13,500 Model S models and 14,050 Model Xs.

"But in the first quarter, that dropped to a combined 12,100 cars (my emphasis), which analysts at banking group RBC said was 'very disappointing'."

Honestly, the vast majority of us never wanted to see this. Is it permanent or temporary? What an incredible crash in deliveries of S and X.

Could this be because word has gotten around about parts shortages and months for service? Could it be that those who can afford these cars are spooked about not being able to get service from their trusted local mechanic after warranty because of restrictions on software and other necessary tools. And PARTS?! Could this be because of the high cost of repairs resulting in high insurance?

Could this be the cows finally coming home to roost? I hope not, but this sure looks bad to me. At this tenuous moment when they need to raise capital, sales suddenly drop precipitously, just as they stop the referral program? So they blame the referral program and hurredly reinstate it?

No, it is not the referral program. It is the chronic agonizing shortage of parts and restriction of vital tools to repair these cars, a practice not dared by any other car manufacturer, if we're being real about it. Oh, they had a loss last quarter mainly due to a paydown. But this drop in sales is a whole 'nother animal, in case no one else noticed.

I really hope this is not what it looks like. Don't let it be so. An interior refresh is nahahot going to fix what is wrong here, and has been for years. I don't do stocks, but $420 is now a dream.

 

[PhatCat]

Yep, it is the cows coming home to roost. Or maybe the chickens coming home to roast?

 

[croman]

Yep, it is the cows coming home to roost. Or maybe the chickens coming home to roast?

That was the line haunting me as well. Holy cow!

 

[Dutchie]

Yeah, if even cows are coming home to roost it must be really bad

 

[Cirrus MS100D]

That was the line haunting me as well. Holy cow!

Holy *crow

 

[iluvmacs]

Or maybe... just maybe... word has gotten out that the Model 3 is ~80% the same car for ~50% the price of the Model S (and the Y will be the same as compared to the X). In fact, it's better in multiple ways. Honestly hard for most people to justify that "upgrade". Sure, the Model S offers some things the 3 doesn't, but the 3 is clearly a far better value.

 

[quickstrike12]

Or maybe... just maybe... word has gotten out that the Model 3 is ~80% the same car for ~50% the price of the Model S (and the Y will be the same as compared to the X). In fact, it's better in multiple ways. Honestly hard for most people to justify that "upgrade". Sure, the Model S offers some things the 3 doesn't, but the 3 is clearly a far better value.

Exactly what i was thinking. I love my S ..and im not a big fan of the trunk area or the front end of the new M3....BUT...for the price difference if i were making the decision today...i very well might have compromised on those things...better range(mine is 75) and very well built with 2170 batteries etc....and the price WAY better....all in all a better bang for your buck.
In short i can easily see this being a significant contributor to the reduction in S/X sales. If indeed this is true...its not going to get better for awhile.

 

[tranzndance]

Model S demand might swing back once people see so many Model 3 cars on the road. I had a Model 3 reservation but got an S because the 3 was not available when I wanted to buy a car. I like having a car that no longer feels like the Camry of the Bay Area.

Seriously, though, the S is an expensive car and it was amazing that it did as well as it did. There are only so many people who can or want to buy such an expensive car. I didn't want to get a car over $50k although it turned out I could afford it. A Tesla was the only vehicle that would compel me to pay so much on a car.

 

[Ludalicious]

Tesla shares sink as car deliveries drop
"In the fourth quarter, Tesla delivered 13,500 Model S models and 14,050 Model Xs.

"But in the first quarter, that dropped to a combined 12,100 cars (my emphasis), which analysts at banking group RBC said was 'very disappointing'."

Honestly, the vast majority of us never wanted to see this. Is it permanent or temporary? What an incredible crash in deliveries of S and X.

Could this be because word has gotten around about parts shortages and months for service? Could it be that those who can afford these cars are spooked about not being able to get service from their trusted local mechanic after warranty because of restrictions on software and other necessary tools. And PARTS?! Could this be because of the high cost of repairs resulting in high insurance?

Could this be the cows finally coming home to roost? I hope not, but this sure looks bad to me. At this tenuous moment when they need to raise capital, sales suddenly drop precipitously, just as they stop the referral program? So they blame the referral program and hurredly reinstate it?

No, it is not the referral program. It is the chronic agonizing shortage of parts and restriction of vital tools to repair these cars, a practice not dared by any other car manufacturer, if we're being real about it. Oh, they had a loss last quarter mainly due to a paydown. But this drop in sales is a whole 'nother animal, in case no one else noticed.

I really hope this is not what it looks like. Don't let it be so. An interior refresh is nahahot going to fix what is wrong here, and has been for years. I don't do stocks, but $420 is now a dream.

I doubt it's the shortage of parts or time the vehicle is in the shop. They have always had parts on hand for my car and same day return... Even when they swapped out my rear performance motor. It was completed and returned in only a few hours. Now loosing 80K CDN in value in 1 1/2 years is something totally different. I feel as if allot of people are turned off when they ask how much you paid and then you tell them just how much they can get ome for today.

 

[Dangerous Fish]

Why post a month old news story? And a crap one at that!

 

[croman]

People expected a refresh. Tesla sorta delivered. There will be some waiting for 2170s. Some will wait for better interior (model 3 dash/hvac at minimum, right?).

Tesla could move S/X if they wanted but they seem concerned about only expanding their international delivery book for Model 3.

 

[glide]

The market for new buyers is nearly saturated. Tesla is still a luxury product.

I’m addition to that they are not seeing the turnover/upgrade factor from current owners.

They need to figure something out quick.

 

[Zextraterrestrial]

You should visit seeking alpha sometime. You’d have better company there

 

[glide]

You should visit seeking alpha sometime. You’d have better company there

Sorry. I don’t like to bury my head in the sand or worship at the altar of Elon.

 

[Uncle Paul]

Official word is that there was a lot of "Pull Forward" of the X and S demand as so many rushed their purchases delivered before the full Tax Credit went away. It was a tremendous rush to get every car delivered as possible for the $7,500 Federal Credit went away.

In first Q 2019 the rush was ended and the smaller 75Kw battery was discontinued. Only the 100Kw was available, so demand was reduced. In addition thousands of Tesla were beginning to be shipped to Europe and Asia. Tesla cannot count them as sales if they are in transit and not yet picked up by their new owners.

Many people that would have purchased an S or X have decided to buy the less expensive Model 3 instead. Imagine that 3 sales will also decline when the Model Y is in volume production.

Tesla's cars are getting better, and their costs are coming down.

 

[P100D_Me]

Could it be that those who can afford these cars are spooked about not being able to get service from their trusted local mechanic after warranty because of restrictions on software and other necessary tools.

The closed ecosystem has worked just fine for Apple, remember them even going out of their way to stop non genuine parts working in their phones?

 

[AMPd]

Whenever tesla stock price sinks I see money signs! Love buying more shares at a lower price

 

[mongo]

Reportedly, the imminent motor/ suspension refresh change leaked also, hurting demand temporarily (and impacting production rates).

Q2 is the last chance for the $3,750 credit so I expect sales to pick up.

 

[whitex]

I have a great investment opportunity for all true Elon believers. On a recent investor call Elon stated that "existing Teslas will increase in value as self-driving capabilities are added via software, and will be worth up to $250,000 within three years". He also stated that robo taxis are coming in ~2 years. So, here is you way to make huge money. My son needs a car. You buy a Model 3 today. You pocket the federal rebate. You give it to my son to drive for 3 years or until tobo taxis come (whichever comes first). I insure it, pay for registration and maintenance. So you pay ~$45K today, in 2-3 years you get your car back, now worth up to $250K. Should be a no-brainer investment, if you believe Elon. If there are many takers, my son has friends willing to drive Model 3's for potential investors.

Any takers? Let's see how many people are willing to put their money behind their beliefs in Elon. @Zextraterrestrial, it sounds like you might be a true believer.

 

[Uncle Paul]

Many of us put our money behind our beliefs, but none of us would be foolish enough to give it to your Son

Sorry, but if your Son needs a car, it may be up to you to get him one. Maybe a gasser that pollutes the air every mile.

If you gave your Son his own Tesla, he would think of you as the best DAD E-V-E-R!

When I was a kid my Dad gave be a bicycle for Christmas. I got a job delivering papers and made more money than that bike cost him. Tought me a great lesson. He was a Great Dad.

Many Tesla owners already are using their cars to earn extra money as Uber/Lyft Drivers. In the future the cars will be able to earn their own keep. Most cars now sit idle about 90% of the time. Foolish use of a depreciating asset.