Thanks for looking up the data. To truly make apples-apples we would need to adjust for model mix and relative concentrations. However, for years you generalizations have largely been valid, since the 2019 issues that including the first Model 3 concentrations. Other things remaining equal the higher MSRP vehicles tend towards lower LTV, shorter tenors and lmuch higher average FICO. Again, generalizing, with higher MSRP especially, longer tenors correlate with higher losses partly because LTV is higher. OTOH, early terminations are more common of longer tenors too, with accidents dominating for more complex models such as Models S and X, BMW 7 series etc.
Your exhibit 12 is brilliant for near equivalencies.
FWIW, recent revision of generic FICO has made it much more volalitile and ultra-sensitive to revolving credit. People with high expenditures and no actual revolving balances often have near weekly shifts of 50 points or more. Tesla owners disproportionately fit that type, which brings down reported FICO withoutncommensurate probability of default.
All this is immediately relevant to us as TSLA holders since Tesla is now ‘mainstream’.
Further the disproportionate California concentration for Tesla does tend to depress overall nominal FICO values. Ideally we could view relative performance by SMSA, which makes Tesla even better. That, however, is the stuff of internal analytics, but has less value from a TSLA-holder perspective.
Thatnks again for posting this. I’m in Greece now, testing a pseudo-competitors newest offering. Tesla has nothing to fear from the North Asian front!
not Woodward. Musk isn’t a president thank god. Watch Tesla Daily. He explains this “inspired” thing pretty well.
