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I can double your assertion. I worked for Chevrolet for 7 years and this is exactly their model and many other dealers. They usually look for good deals on trade ins and then send to service to do all the perfunctory things, and call that a "pack".I have relatives that own a Volvo dealership. About 2-3 years ago one of them (who is quite anti-Tesla) told me it was common knowledge in the industry that used Tesla were good cars to buy at auto actions because they were typically in very good condition and were known to easily sell for higher markups. Auto dealerships buy much of their used stock at from big auto wholesale auction houses.
OK, so these GM dealers "serviced" them before re-selling them. That includes a good wash and polish, vacuuming and general clean-up service, checking tire pressures and filling up the windshield washer fluid. GM dealerships must be more technologically advanced than I thought! /s
Def a "demand problem"I've been helping several friends purchase 3s and Ys. I was just on the website. What's up with all the demo models? I thought that was an end of quarter thing. Refresh on the way?
Maybe cycling the showrooms to 2023 models.I've been helping several friends purchase 3s and Ys. I was just on the website. What's up with all the demo models? I thought that was an end of quarter thing. Refresh on the way?
Imo 2 things need to occur tho one is more important than the other.
1. Demand fear needs to leave, which won't happen until recession is over. Everyone telling people how ridiculous the forward PE but doesn't account for what is pricing in, which is no where near 50% yoy growth for next year due to a recession. Not many companies are guiding up from all these earnings. Wallstreet are not taking Teslas guide seriously because Musk is always overly optimistic. Musk then said 2023 will be rough, and his stance on recession killing companies is still the same. So people will take " our companies are well positioned" as "bankruptcy is not on the table".
2. Musk needs to buy some Tesla. This is a symbol that he is confident with twitters financials and the overhang should finally be over.
So for the stock get out of the mud, we need some of these things to happen.
Yep this, in China they want to control their demand so they can supply almost direct from the factory (excluding exports) and with 30% margins they can do this pretty easily, we've seen how a small decrease in price impacts the competition hardThe question is however what price & gross margin those cars will sell for, which the market is rightly more legitimately concerned about.
The counter to this though which seemingly all of Wall St is either forgetting or just choosing to ignore is that it's not just a possibility, but the most likely outcome that Tesla will sell 2.5 million units at $50k ASP with 30% GM (using your numbers example).I would say even in a recession Tesla will still sell every car they produce in 2023 (excepting the growing inventory in transit from “ending the wave”), so the unit growth is still supply limited rather than demand limited.
The question is however what price & gross margin those cars will sell for, which the market is rightly more legitimately concerned about.
Tesla selling 2.5 million units at $50k ASP & 20% GM will be valued differently by the market than 2.5 million units at $55k ASP & 30% GM (purely hypothetical numbers, not a projection).
Elon has stated they will choose volume over profits if that choice needs to be made, which is an excellent choice while the EV land grab still has years to run, and production capacity increase is still the priority - no point slowing down production expansion due to a recession that lasts for a relatively short period.
GM update on their EV plans. Funny what they think EV leadership would look like in 2025:
1 million units in North America with mid-single-digit EBIT margins
Link: GM Raises 2022 Guidance and Expects North American EV Portfolio to be Profitable in 2025 as Annual Capacity Tops 1 Million | General Motors Company
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And a costco membership so they can get the batteries. "Batteries secured."I watched most of the presentation and what struck me was just more of the same from GM.
-Enormous number of EV models to satisfy every possible market segment.
-Organizationally doing much like they have done in the past. Yeah we moved the transmission engineers to EV drivetrain as they both have gears!
-Some efficiencies on scaling one architecture for many platforms. This is occurring as they have somewhat of a clean sheet for EV's launching in a short period but nothing really innovative.
-Still lots of new ICE vehicles coming as they need to provide the profits to fund EV's.
-No real discussion of more vertical integration, except for the partnerships on making batteries.
-The solution for the dealer problem is GM now holds the inventory in local fulfillment and the dealer can get the vehicle in a few days. They expect to save $2K per vehicle but I really doubt it as someone still needs to hold the inventory and associated cost. Reminds me of the Chrysler inventory "banks" just prior to their first bankruptcy.
Kind of what I would expect. Nothing that really stood out as innovative or doing things different to take advantage of the transition. The message was "we are big bad GM and we are bigger and stronger than anyone and we got this handled".
"Represents 70% of industry volume"?? Is that some weird metric where your market share is based on weight of all the cars you have on offer? Because the chances they will have 40% of actual sales is pretty slim at the current rate.GM update on their EV plans. Funny what they think EV leadership would look like in 2025:
1 million units in North America with mid-single-digit EBIT margins
Link: GM Raises 2022 Guidance and Expects North American EV Portfolio to be Profitable in 2025 as Annual Capacity Tops 1 Million | General Motors Company
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How many shares of GM do we need to own for a class action suite? asking for a friend.
I read it as those models represent 70% of passenger vehicle types. So at best, they could capture 70% of the BEV market with those models. Wonder how much they will actually capture with the SEXY CT lineup? Using their number of 20% of total US market being BEVs in 2025. Total US market in 2025 should be around 15 to 20M (maybe higher, but being conservative). 20% would be 3M to 4M. Tesla will most likely sell 2M+ in the US, not to mention Robotaxi penetration into total rideshare miles."Represents 70% of industry volume"?? Is that some weird metric where your market share is based on weight of all the cars you have on offer? Because the chances they will have 40% of actual sales is pretty slim at the current rate.
Even their own numbers don't match up. Tesla's current North America production is around 750k/ year. Even if GM hits their 1m vehicles per year mark and Tesla's volume stands still, GM is only at 58% of GM+Tesla's North American volume.
Am I reading this metric wrong? What exactly is "Industry Volume"?
You are assuming Tesla is still at 750k. Their calculation is based on taking away Tesla sales, not ICE sales. Can you imagine their own EVs taking away ICE sales? That will cause share price implosion."Represents 70% of industry volume"?? Is that some weird metric where your market share is based on weight of all the cars you have on offer? Because the chances they will have 40% of actual sales is pretty slim at the current rate.
Even their own numbers don't match up. Tesla's current North America production is around 750k/ year. Even if GM hits their 1m vehicles per year mark and Tesla's volume stands still, GM is only at 58% of GM+Tesla's North American volume.
Am I reading this metric wrong? What exactly is "Industry Volume"?
I'm watching the GM Investor day.
GM President Mark Reuss is making a point they have serviced 11,000 Tesla's because GM dealers are so trusted. It's a growing business for them!
He did not say what service they do but my best guess buying tires?
I spent my life working in an industry that destroyed capital. (Airlines.) The auto industry is remarkably similar.The comment doesn't make any sense. Why would Tesla be worth zero if FSD doesn't pan out? Sometimes Elon just says random things.