If you're looking for dispute that Model 3 osbournes S, you're not going to find it from me. I've been amazed that it took this long for it to happen. And now, S and X are osbourning S and X, since almost everyone seems to think a refresh is imminent.
So you think Tesla should have, instead of producing 77k vehicles and delivering 63k, they should have instead produced 90-100k and delivered 63k, and thus tacked another 1B loss to FCF? Great plan there.
With SR in the mix
in the US (which IMHO
was clearly demand limited in Jan + Feb, due to the front-loading effect of the tax credit cliff, and seasonal low volumes; it's hard to say whether March was more limited by demand or deliveries), now you have the SR osbourning higher-end 3s. You
have to reduce their price to continue to sell them, and it's important because their margins are so good (even price-reduced). Global S+X price reductions, again, you're not going to get any dispute from me that S+X has been osbourned and needs stimulus - although the real stimulus they need is not a "
buy our car!" ad, it's a refresh so it can regain the crown of "
the latest tech".
Until then, the proper solution is to eliminate the low-margin S+X variants - which made up the lion's share of sales - to "downsell" buyers to the higher-end 3 variants, which make more profit, and have all remaining S+X sales have higher margins. Remember, it's not about raw volume - it's about how much you earn.