stef
Member
That’s the point. I (and I guess many more) were also given a March delivery estimate... but somehow got the car earlier.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
I always picture him shaking a stick and shouting "Damn Tesla! Get off my lawn!"
The same here in Germany.
Actually over night the price for the 3 I ordered in Dec supposedly went €5,200 down.
I wait for an official confirmation but its pretty save to assume it will happen as otherwise people may just cancel and order again to get the better price.
Awesome, just show me any manufacturer that would do that other than Tesla.
Call it genius or happy punch that I postponed my delivery from February to April....
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That is the "penalty" for being one of the first to get it. Love my Sig X but being one of the first to get it I missed out on AP2 and had little choice in options as Sigs were fully optioned except for a very few things. Still wouldn't change it for anything. Best drive I've ever experienced. The mission continues thanks to folks like you.
Musk is super impulsive and needs a COO with a calm and far-thinking demeanor.
Edit: for those disagreeing pls explain why. I am a large shareholder myself so this is not just FUD. He is doing things without thinking thru all the repercussions which is the very definition of impulsive.
Edit: for those disagreeing pls explain why. I am a large shareholder myself so this is not just FUD. He is doing things without thinking thru all the repercussions which is the very definition of impulsive.
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I thought they said they expected a slight profit but wasn't sure. Now, it's most definitely a loss.
Maybe they lower the price to the current ones minus the non-refundable deposits (1000 EUR on reservation + 2000 EUR on ordering). This way they avoid having people cancelling their orders for re-orders, and yet they don't have to go the whole way.
I am actually a little bit surprised that I dont' have a delivery date yet (Tesla owners are supposed to have priority). I take it as a good sign that tons of 3s are delivered before mine!
You think these changes weren't the result of extensive long-term planning and discussion?
Tesla moves quickly. Any executive who's not used to moving quickly leaves, leaving only those who, like Musk, like to move quickly. The speed at which Tesla moves is why they've been eating everyone else's lunch. They need to keep doing so rather than sit back and rest on their laurels.
I plan on doing my part. As with anything 'Tesla' current pricing is a limited time offer. So if you're on the fence about upgrading to FSD you should seriously consider doing it soon.
On the contrary, white interior is already available for partial-PUP.
BTW, I don't know about others, but as someone who's been waiting for the chance to buy their Model 3, my reaction to the announced price reductions wasn't, "I'm going to save money!", it was "I'm going to be able to add more options if I want to!"
I've always been staunchly, "EAP for $5k? Haha, no thanks." But with a major vehicle price reduction saving me money, and EAP only $3k now? I'm actually considering adding it. And that's pure profit for Tesla. It's like Tesla saying, "Hey, you don't have to give us as much money... but wouldn't you like to give us as much money?"
I've always been staunchly, "EAP for $5k? Haha, no thanks." But with a major vehicle price reduction saving me money, and EAP only $3k now? I'm actually considering adding it. And that's pure profit for Tesla. It's like Tesla saying, "Hey, you don't have to give us as much money... but wouldn't you like to give us as much money?"
Am I thinking what you're thinking? I smell a full size SUV coming with the pickup platform.
FrANce, you don't have a VIN yet. Contact Tesla customer service and request the adjustment. This past November there was a small cost reduction announced days before I got my VIN and the adjustment was made.
Regarding the pricing changes, I compared our fully loaded M3LRD, White on White, EAP, FSD, 19's and see a difference of 2250 after the Fed tax credit (full vs half). I took delivery the 6th of December, it isn't so terrible. About resale, the 3 is our first EV. All cars are a long term commitment for us, so a non issue. Welcome to all those who can benefit from the adjustments which have now made the M3 so much more affordable!
bhtooefr
Active Member
Worth noting that it's AP, not EAP - Traffic-Aware Cruise Control and Autosteer only. EAP also included Summon, Autopark, and Navigate on Autopilot, all of which are now part of FSD.
(That's actually a bit weird, as there's a lot of lower tier brands that have auto parking nowadays, I could've gotten it on my Prius, even (granted, only on the top trims). But, eh, it'll encourage FSD sales, and there's a logical progression into it - I suspect a lot of people that weren't going to get EAP will now get AP, and a lot of people that were going to get EAP but not FSD will now get FSD.
Driving one's car onto the ice is not uncommon...
Latest information indicates the rock/ ice chunk of doom was on land.
Any thoughts on how the price reductions on new vehicles across the line-up affects the automotive VIEs, TALTs, residual values and guarantees to 3rd party lessors, and finished goods inventory write-downs (for the used car component) for Ss and Xs?
As we said, if Tesla don't release the M3SR, they're doomed, if they do, they're doomed. Here's some commentary on that by a bunch of idiots:
The 'un-iPhone moment' — Here's what analysts had to say about Tesla's new Model 3
Here's what the analysts had to say:
Barclays- Underweight rating
" Another few 'blue pill' bull case points undermined... As we have long argued, the bull case for Tesla often revolves around it being the next Apple, with the Model 3 as the iPhone...But today's announcement of a lower priced $35k Model and closing all stores/galleries undercuts a few of those pillars..."
Morgan Stanley- Equal-weight rating
"Tesla significantly increased its efforts to promote the sale of cheaper cars... While this may stabilize the air-pocket in Q1 sales, we're concerned it's a sign of a brand that may be, at the margin, losing its halo of exclusivity. We think the bears have more material to work with than bulls here..."
Goldman Sachs- Sell rating
"Ultimately, we think this announcement may have been anticlimactic for investors, with the timeline for the launch only accelerated a couple months and as we believe investors were looking for details on new products (Model Y or Pickup truck) and a potential update on Model 3 demand (remaining reservations, weekly order rates, initial international demand levels)... While we believe the introduction of the $35k Model 3 may be positive for overall program demand — which we and investors have been questioning given the phase out of the EV tax credit in the US and price elasticity of demand for the higher priced vehicle variants — we also think this will drive a downward mix impact for Model 3 margins..."
Bernstein- Market-perform
"Given its seeming abruptness, it does not appear that yesterday's announcement was made from a position of strength...We believe that a $35k Model 3 has close to ~0% gross margins today, suggesting that these price cuts could materially dilute Model 3 and company gross margins initially – we estimate up to 600+ bps and 400 bps respectively. We *guess-timate that cost savings from reducing Tesla's sales offices might amount to $500M per year; similarly, a 500 bps hit to GMs from lower prices would point to $850 million of lost gross profit dollars... Accordingly, if Tesla does continue to improve its manufacturing costs – which it strongly believes it can do – operating margins over time could very well improve from last quarter's levels, even before further expected op ex leverage... The move to direct sales is bold, though we are comforted that 70%+ of Tesla buyers in 2018 did *not* test drive prior to purchase... That said, we do believe that salespeople have been important in upselling Tesla customers, as well as selling Tesla solar products. Tesla's actions appear to be further acknowledgement that Model S and X sales remain challenged, and that the European roll-out has been more difficult than expected..."
Bank of America- Underperform rating
"We would note that TSLA previously indicated that it expected to deliver midrange/ price Model 3s across major markets likely around May of this year, progressing towards lower-range/price models around mid-year... In our view, the result of what appears to be an earlier push of lower range/price Model 3s will likely be an increase in volume in the near term, rather than an increase in profits, as the cost structure for mass market electric vehicles (specifically those priced around $35k) is not yet breakeven, as outlined in our Who Makes the Car analysis... And while TSLA noted that these new models will be lower in cost, it appears this may be more a function of reduced battery size and range, rather than any other major cost efficiencies..."
J.P. Morgan - Underweight rating
"The centerpiece of the announcement revolved around the long-awaited debut of the shorter range base version of the Model 3 sedan starting at the long-promised price of $35,000 — a seemingly positive development... However, in a posting to the company's blog and in an email to employees made publicly available, Tesla CEO Elon Musk explained that in order for the company to be able to both offer the car at this low a price and to remain financially sustainable, it has become necessary to close most of the company's well over one hundred stores, which we estimate could result in another round of potentially thousands of lay-offs (it dismissed 7% of its full-time staff just last month), along with restructuring charges and severance pay... We do not think this was the original plan envisaged by Tesla management and bullish investors, but rather is instead suggestive of what we have long feared — that the Model 3 would prove more difficult and more expensive to manufacture than was originally projected, such that the firm would struggle to earn its targeted above industry average 25% gross margin as it transitions toward industry average pricing..."
The 'un-iPhone moment' — Here's what analysts had to say about Tesla's new Model 3
Here's what the analysts had to say:
Barclays- Underweight rating
" Another few 'blue pill' bull case points undermined... As we have long argued, the bull case for Tesla often revolves around it being the next Apple, with the Model 3 as the iPhone...But today's announcement of a lower priced $35k Model and closing all stores/galleries undercuts a few of those pillars..."
Morgan Stanley- Equal-weight rating
"Tesla significantly increased its efforts to promote the sale of cheaper cars... While this may stabilize the air-pocket in Q1 sales, we're concerned it's a sign of a brand that may be, at the margin, losing its halo of exclusivity. We think the bears have more material to work with than bulls here..."
Goldman Sachs- Sell rating
"Ultimately, we think this announcement may have been anticlimactic for investors, with the timeline for the launch only accelerated a couple months and as we believe investors were looking for details on new products (Model Y or Pickup truck) and a potential update on Model 3 demand (remaining reservations, weekly order rates, initial international demand levels)... While we believe the introduction of the $35k Model 3 may be positive for overall program demand — which we and investors have been questioning given the phase out of the EV tax credit in the US and price elasticity of demand for the higher priced vehicle variants — we also think this will drive a downward mix impact for Model 3 margins..."
Bernstein- Market-perform
"Given its seeming abruptness, it does not appear that yesterday's announcement was made from a position of strength...We believe that a $35k Model 3 has close to ~0% gross margins today, suggesting that these price cuts could materially dilute Model 3 and company gross margins initially – we estimate up to 600+ bps and 400 bps respectively. We *guess-timate that cost savings from reducing Tesla's sales offices might amount to $500M per year; similarly, a 500 bps hit to GMs from lower prices would point to $850 million of lost gross profit dollars... Accordingly, if Tesla does continue to improve its manufacturing costs – which it strongly believes it can do – operating margins over time could very well improve from last quarter's levels, even before further expected op ex leverage... The move to direct sales is bold, though we are comforted that 70%+ of Tesla buyers in 2018 did *not* test drive prior to purchase... That said, we do believe that salespeople have been important in upselling Tesla customers, as well as selling Tesla solar products. Tesla's actions appear to be further acknowledgement that Model S and X sales remain challenged, and that the European roll-out has been more difficult than expected..."
Bank of America- Underperform rating
"We would note that TSLA previously indicated that it expected to deliver midrange/ price Model 3s across major markets likely around May of this year, progressing towards lower-range/price models around mid-year... In our view, the result of what appears to be an earlier push of lower range/price Model 3s will likely be an increase in volume in the near term, rather than an increase in profits, as the cost structure for mass market electric vehicles (specifically those priced around $35k) is not yet breakeven, as outlined in our Who Makes the Car analysis... And while TSLA noted that these new models will be lower in cost, it appears this may be more a function of reduced battery size and range, rather than any other major cost efficiencies..."
J.P. Morgan - Underweight rating
"The centerpiece of the announcement revolved around the long-awaited debut of the shorter range base version of the Model 3 sedan starting at the long-promised price of $35,000 — a seemingly positive development... However, in a posting to the company's blog and in an email to employees made publicly available, Tesla CEO Elon Musk explained that in order for the company to be able to both offer the car at this low a price and to remain financially sustainable, it has become necessary to close most of the company's well over one hundred stores, which we estimate could result in another round of potentially thousands of lay-offs (it dismissed 7% of its full-time staff just last month), along with restructuring charges and severance pay... We do not think this was the original plan envisaged by Tesla management and bullish investors, but rather is instead suggestive of what we have long feared — that the Model 3 would prove more difficult and more expensive to manufacture than was originally projected, such that the firm would struggle to earn its targeted above industry average 25% gross margin as it transitions toward industry average pricing..."
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