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

[Nolimits]

They don’t need to advertise when they drop a bomb like this. Great example of : Passing the savings onto the customer!

 

[EVNow]

Pricing will still be used to make Demand == Supply

Thats exactly we have been saying.

Realists : Tesla prices need to come down since they can't sell the volume they are producing at these prices
Hopium Addicts : Na, Na, Na

Tesla reduces prices as inventory goes up.

Realists : Told you.
Hopium Addicts : Just eco 101. You got it wrong. We are never wrong.

 

[Hiline]

Happy to see Tesla taking some positive actions to counteract some of the things our economy is going through at the moment. I purchased a LR Model Y and Model 3 in 2022, both of which were selling for thousands more later in the year. Both are cheaper now than when I purchased but I don't really care about that. I was really worried that Tesla was too aggressive with price increases over the last year especially, of course, I'm not privy to manufacturing costs so it may have been necessary but I was sure those increases were going to have some kind of effect on demand, it's simple economics. In hindssite, TSLA might have been better off taking a hit on margins but that's a long term business call and I'll give them the benefit of the doubt.

When looking at current pricing and taking pricing from 2020 ... it's easy to draw the line to see how the current prices make sense after reducing manufacturing costs and especially ramping up several new factories. I still think Tesla will have some amazing margins and might even surprise the street with how well they will hold up even in the wake of the new pricing structure. Elon's plan has always been to make the cars affordable for the mass public so it should surprise no one that he wants to cut prices whenever possible.

IF Q1 of '23 shows minor impacts to margins ... it's completely game OVER for OEMS. Even with major impact to margins, Tesla will still have margins which are multiples better than any OEM, of course, WS won't really like that very much so I'll hold out for minor impacts to margins.

Watching some of the analysts, like Cramer (yes, could I have picked a more polarizing figure??) say things like this new pricing shows Tesla is facing pressure from competition makes me wonder what planet he lives on?? This pricing pressure has NOTHING to do with competition ... it's more of an issue as to how many people can afford high end prices on vehicles. The real pressure is now on OEM's to try and find a way to enter the EV market without suffering huge losses and frankly, I have no idea how they do that.

Hoping that WS will do the proper analysis and treat TSLA's SP accordingly.

Cheers to the longs.

The legacy automakers are dead fish the way things are. They will rack up billions in losses before they can produce EVs in any significant numbers. And by that time Tesla will have expanded and optimized production so significantly that they will beat everyone else on price, not to mention the technologies that will likely be still a few years ahead.

Their only way out of the path to bankruptcy is to appeal to Congress for aid. Congress may need to modify IRA to benefit Tesla less. With this divided Congress I don’t know how quickly the legacy automakers will get it. If the government support doesn’t come by the end of 2024, the game is over. Tesla will be making 20B in profit and Ford and GM will be out of cash trying to slash prices and boosting production to catch up.

The first time I bought TSLA was in early 2013 and I have never been this bullish on the stock.

The only reason I was asking about a PT expectation is to know when to sell when the stock becomes overbought. I am generally decent at buying at the right time but trying to learn to sell at the right time too.

 

[navguy12]

…Bloomberg has at least one hit piece out there about customers who say Tesla has "let them down" because they're not worth what they used to be...

WTF, over?

Does it all come down to a Tesla just being another object in status symbol land?

AFAIC, my 4.75 year old TM3 (which I will keep until it’s at least 10 years old) is worth more to me now than when I bought it (for all the reasons that any Tesla owner can/will tell you about).

 

[BornToFly]

My brother has an EV6 on order. With the price drop, he has now ordered a MY, but is thinking of just getting the EV6 because of the "better ride quality, lack of proximity sensors on the Tesla, and Phantom braking, " etc. If you have owned an EV6, can you please private message me your thoughts so I can give him a better comparison between the two cars? Thanks.

 

[elasalle]

https://twitter.com/x/status/1614068049518415872

Uncle Leo and Aunt Cathy doing their thing

 

[EVNow]

PHEVs aren't "friendly" when most owners never plug them in,

I don't know how many have seen this ... but many PHEV owners indeed don't properly use the battery. When properly used, ofcourse, PHEVs can be fine. For eg. I had a Volt for 2 years when waiting for Model 3. Used it for commute and local travel. I never used gas at all in 2 years (except for mandatorily burning gas in the tank once or twice). But then, I was used to driving with "100 mile range" Leaf for 6 years.

Many People Aren't Plugging In Their PHEVs, According To Study

Plug-in hybrid electric vehicles (PHEVs) are only effective if you keep them charged. Otherwise, they're just a gas-powered hybrid with harmful emissions.

insideevs.com

 

[Hiline]

WTF, over?

Does it all come down to a Tesla just being another object in status symbol land?

AFAIC, my 4.75 year old TM3 (which I will keep until it’s at least 10 years old) is worth more to me now than when I bought it (for all the reasons that any Tesla owner can/will tell you about).

Can’t wait for my insurance and registration costs to go down!

 

[LodiEVFan]

The trend is no longer tslaq friend
Inventory down from 2500 to 1500

Portfolio - Matt Jung Photography

Thanks for this elasalle! Does anybody have a chart that compares Tesla inventory to the OEMs? I have to believe that the comparison would show Tesla with much lower numbers.

 

[Usain]

Uh, no, PHEVs aren't "friendly" when most owners never plug them in, power them with gasoline only, and drag around 200 lbs of batteries which are rarely charged from the grid. PHEVs are a boondoggle which might have made sense in 2010, but certainly does not in 2023 (or 2033, which is the planned life of IRA). Nope.

PHEVs are only a small, rather insignificant part of the bill. Yes, the PHEV part is really stupid. But overall, the bill is friendly to the environment, consumers, US jobs, and Tesla.

 

[Artful Dodger]

And Tesla brought a Lightsaber to a ‘Rock, Paper, Scissors’ fight!

... or a phased plasma rifle in the 40 watt range.

He'll be back.

 

[ggies07]

The job loss would be too big though. Auto workers are not those that can easily be re-trained to do something else, unlike bankers. Likewise for Ford.

Next up with a dash of AI....UBI! Time to implement it...let's not waste more of our money to have some company produce weak EVs.

 

[navguy12]

On the Tesla Model 3/Y Montreal FB group I see a lot of pissed off customers who took delivery recently of Teslas. I know how they feel because au took a delivery of my 2019 SR Model 3 exactly 2 weeks before the federal government released a 5k incentives so I missed out on a 5k price reduction. Didn’t blame anyone for it and just took a 5k loss when I sold it 2 years later and bought my Model Y. For the people changing cars every 1-2 years that must be a bigger problem than the ones keeping their car 10 years. I was lucky K bought my Model Y when the prices were still low so it’s not a current problem for me however to avoid a bunch of pissed off people I was wondering if decreasing the prices incrementaly 2-3% monthly over 6 months could have pissed less customers in the process. I realize the point was to qualify for the EV rebate however I am trying to be devils advocate for all the people complaining online. The price increases were incremental so I am trying to figure out the Tesla argument to drop the price suddenly instead of small steps.

Yea, gonna rant AGAIN on this point (not at you @OrthoSurg but) at the pissed off owners of new Tesla’s who suddenly feel they are worse off than, well, some poor soul who’s home was bombed in Ukraine.

Since when did consumers in a free market economy suddenly expect to be deserving of some “bad timing” refund because someone else, somewhere, had better random chance timing of a purchase.

Prior to their purchase of their Tesla’s last month, did any of them ever buy an ICE from a dealer at some point in the past?

And they know beyond reasonable doubt that their particular ICE purchase was the cheapest one compared to all the others in North America for that make/model/options and that price wasn’t higher than ANYONE else that month.

I really wish some people in the first world would have some perspective.

Rant over.

 

[Artful Dodger]

Only works if you can do it for $500/car. Any more than that and you might as well buy new or slightly used.

Also works if your hidden agenda is to delay the transition to BEVs to preserve your dying ICE business. So there's that...

Cheers!

 

[FSDtester#1]

That is racist. .,

I apologize, as I wasn't aware Ogres are in a protected class.
I will refrain from picking on Ogres in the future and enroll in a sensitivity program.
On that note could we set up a protected class for TSLA investors.
Like PTIN? "Protect Tesla Investors Now", just a thought
(@The Accountant ) gets the acronym!

 

[Max Plaid]

Regarding angry customers, what can Tesla do? Implement a 2-week guarantee like Apple? Then the ones that took delivery 15 days back will be pissed, you can never win

I think the right approach is what they're doing, to reduce the price of cars on order, not yet delivered, which is pretty much Amazon's policy toon if I recall. Not sure any other car manufacturers do this...?

https://twitter.com/x/status/1614289040051785728

 

[dhanson865]

I'm so glad they lowered prices on Tesla cars. That'll make it more likely that you all slow down for pedestrians crossing the street according to the study.

A study has found that drivers of flashy vehicles are less likely to stop and allow pedestrians to cross the road – with the likelihood they’ll slow down decreasing by 3% for every extra $1,000 that their vehicle is worth.

If you drive an expensive car you're probably a jerk, scientists say | CNN

The science is looking pretty unanimous on this one: Drivers of expensive cars are the worst.

www.cnn.com

 

[wipster]

... or a phased plasma rifle in the 40 watt range.

He'll be back.

LOL... In my head, I read all that in Ahnauld's voice!

 

[elasalle]

Regarding angry customers, what can Tesla do? Implement a 2-week guarantee like Apple? Then the ones that took delivery 15 days back will be pissed, you can never win

I think the right approach is what they're doing, to reduce the price of cars on order, not yet delivered, which is pretty much Amazon's policy toon if I recall. Not sure any other car manufacturers do this...?

https://twitter.com/x/status/1614289040051785728

Give them 1-3 years of free autopilot/FSD
Doesn’t cost anything…

Next supercharger points , solar, power wall install points, insurance discounts etc ...

 

[FSDtester#1]

... or a phased plasma rifle in the 40 watt range.

"Hey buddy, only what you see on the shelf"!