Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[Creekstalker]

And people associate white with Apple - they want people to know Tesla is the Apple of automobiles.

I don't understand this sentence.

 

[dww12]

i'm amazed a pearl multi-coat is now a base color versus a plain white. Wonder how the math worked on that to make that happen.

Probably what they have until the giant shipload of plain white comes in.

The drop on the performance price is insane.

 

[dww12]

Yes, but since mine is a Pearl White Performance it's a bit less expensive now. But I'm not like those entitled people who went around moaning and groaning that Tesla has "devalued" their "investment". I welcome seeing more Pearl White Model 3's in the wild because I think it's the finest looking one of them all. I think it's foolish to look at the purchase of a new car like an investment and yet that is very common if I can take what I read on the Internet at face value.

Interestingly, Tesla now says 18" Aero wheels are an optional substitute for the 20" wheels if you order a Performance Model 3. This will increase the sales ratio of the higher margin Performance vs. AWD model, particularly when combined with the Performance price cut. Before this option, if I totaled my Performance Model 3 I would have replaced it with the lower margin AWD, simply because I didn't want to take delivery of a car with 20" wheels/tires that I would then want to immediately sell (I hate selling things). Now I could simply replace my P3D with another P3D and request 18" Aero wheels.

This is a good change that I recommended recently on the forum. Maybe Tesla is listening?

How do you think they are fitting the performance brakes in there with the aeros?

 

[MP3Mike]

How do you think they are fitting the performance brakes in there with the aeros?

Probably redesigned the wheels a little bit. (Other aftermarket 18" wheels fit.)

 

[Prunesquallor]

The default color is now white (multi-coat)

Interesting

---

Oh

US SR+ is also getting a $910 price cut.
AWD $1,910 cut
Performance is getting a $4,910 cut.

White Multi-coat also default color

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A record quarter, and Tesla is lowering prices? I do believe this company wants to sell a sugar-load of vehicles.

 

[JusRelax]

These changes are in line with the rumored production increase. Production increase of model 3 results in higher margins, so they lower prices to match demand with the production increase. For model s/x, my take is that profit margin is higher on long range and they think this outweighs the drop in price of long range.

 

[Freder Reeve]

wish tesla controlled the narrative once in a while.

 

[eloder]

Pearl white multi-coat as default seems like it'd be a huge margin hit. This color is by far the most popular Model 3 in my city.

Definitely seems like a typo given Elon's statement, too.

 

[SOULPEDL]

Consider 2 paths:

1. Profit in Q2, ramp on track, profitable moving forward.
2. Loss in Q2, but we dropped the prices anyway... we'll make it up in volume.

#2 doesn't seem likely to me.

 

[S3XY]

Could it be a power substation with a large emergency generator, to keep the factory powered during hurricanes and flood? It would be natural gas powered, hence the distance to the main building.

Individual pump stations could thus be electric and would be distributed along the flood defense perimeter. The pumps are needed because levees are not enough: ground water would press in from below during prolonged river flood events.

Cheaper, simpler and faster than elevating this huge factory area.

This is obviously the location of the exit lift for the Boring Company's Fremont to Shanghai tunnel.

 

[Chasingmars]

So one very interesting thing for the new Canadian price on the Performance model for people in Quebec - the Provincial rebate here is C$8,000 if the MSRP is under C$75,000 and steps down to C$3,000 if the MSRP is between C$75,000 and C$125,000.

The Performance M3 has a Canadian MSRP of C$74,990 as of this price change, so in Quebec, it would appear all three trims available here now qualify for the full Provincial incentive...

 

[EVNow]

Well, "hate" is a strong word but I cannot tell a lie:

I don't like Russian oligarch climate deniers who smell like kerosene and have an affinity for little girls.

They just don't sit right with me.

What … you don't like pedophiles too now. This PC culture is getting out of hand.

 

[StealthP3D]

How do you think they are fitting the performance brakes in there with the aeros?

You don't need performance brakes unless you are doing repetitive full-on threshold braking as you would do at a racetrack. The regular brake calipers work just as quickly as long as you haven't exceeded their thermal capacity with repeated stopping. The regenerative braking can handle long grades down steep mountain passes without ANY use of the friction brakes.

In other words, if you request the 18" Aero wheels you will almost certainly get the smaller, lighter brakes. Which work excellent for driving on public roads.

 

[anthonyj]

Price cuts are meant as a spanking to other OEMs. The people that freak out and sell and fill the tutes orders don’t get it. Screw profits, make everyone bleed. Elon will drive this company off a cliff along with all of the “competitors”. Luckily the company has SpaceX technology to keep it afloat

I’m buying the dip so hard tomorrow. So, so hard.

 

[EVNow]

The default color is now white (multi-coat)

Interesting

---

Oh

US SR+ is also getting a $910 price cut.
AWD $1,910 cut
Performance is getting a $4,910 cut.

White Multi-coat also default color

View attachment 430115
View attachment 430116

Not liking it. ASP will reduce making profits in Q3 difficult.

It was always going to be likely - given tax credit changes - but if they are getting more orders than production, why reduce prices ?

Most logical explanation (here come the disagrees) is that they are lowering the demand to match demand with supply. Especially now that tax credit is reducing. There was also probably some pull forward. So, to meet the guidance of increased production and delivery in Q3 over Q2, they have to reduce prices. I just hope the cost is improved and they can indeed maintain atleast ~20% margin.

BTW, any changes in S/X pricing ? If not, that shows post-Raven demand is good for S/X.

 

[Singuy]

I wonder why Tesla couldn't wait a few more days until after ER. This will give people color in on the margins vs widely guess to see how Tesla will need to make up for the reduce prices.

Price drop is disappointing. Elon via Twitter said no more price drops and yet here we are.

 

[dww12]

Consider 2 paths:

1. Profit in Q2, ramp on track, profitable moving forward.
2. Loss in Q2, but we dropped the prices anyway... we'll make it up in volume.

#2 doesn't seem likely to me.

I was thinking exactly the same thing. Profit secured. ICE car death watch is Q3.

 

[X Fan]

Just checked Tesla site:

I must have missed this: Model X standard range no longer available (again).
Premium connectivity is now only a year.
Btw: price is markedly below what I paid for both of my X’s but no supercharging narrows the differential given my long distance driving profile.

FWIW: I have to think a component of price decreases are coming from no supercharging costs/reserves and lower connectivity reserves.

• Premium Connectivity (1 year included):
  • Satellite maps with live traffic visualization
  • In-car internet streaming music and media
  • More frequent over-the-air updates via cellular
  • Internet browser

 

[Singuy]

Price cuts are meant as a spanking to other OEMs. The people that freak out and sell and fill the tutes orders don’t get it. Screw profits, make everyone bleed. Elon will drive this company off a cliff along with all of the “competitors”. Luckily the company has SpaceX technology to keep it afloat

I’m buying the dip so hard tomorrow. So, so hard.

LoL that's some crazy Japanese kamakazi style of strategy there.

 

[Mars ☰mperor]

Not liking it. ASP will reduce making profits in Q3 difficult.

It was always going to be likely - given tax credit changes - but if they are getting more orders than production, why reduce prices ?

Most logical explanation (here come the disagrees) is that they are lowering the demand to match demand with supply. Especially now that tax credit is reducing. There was also probably some pull forward. So, to meet the guidance of increased production and delivery in Q3 over Q2, they have to reduce prices. I just hope the cost is improved and they can indeed maintain atleast ~20% margin.

BTW, any changes in S/X pricing ? If not, that shows post-Raven demand is good for S/X.

standard range S & X have been removed.

Long range price cut by about 4000 or 5000
Ludicrous cut about 15,000 or 16,000, which I think is fine as this may lead to more higher end sales.