I feel like the price should react more. Everyone was surprised by the announcement! Can anyone help me understand why it hasn’t and when it will? Thank you kindly.
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As of the last we heard, Model Y is only "sort of" on the same platform. They're making significant modifications to the platform for it, but not going through a whole new generation as Musk initially wanted. As an example of one of the changes that we know about would affect a tow package, Model Y is eliminating 12V power from the wiring harness in favour of a higher voltage. That is, unless Tesla has changed the design on that aspect as well
(what, Tesla change things? )
dmckinstry
Model X 2019
If they are hiring drivers to drive company-owned cars they are not an "Uber-like" service. They are a taxi company that has to pay a minimum hourly wage. That is one of several advantages Uber and Lyft have over traditional taxi companies where drivers complain of making as low as $5 per hour after expenses. And even at that, Uber and Lyft are not making money yet.
Until drivers can be eliminated from the equation ride-hailing is a break even at best proposition.
A division of my transport company, operated crew cab pickup trucks to deliver RV's across the U.S. and Canada out of the factories in Indiana. The manufacturer pay rates are tough. Without tight cost controls and volume savings on fuel and maintenance discounts, most independent contractors go belly up after a few years when it comes time to replace a transmission or rebuild an engine. The RV transport industry already knows this and that is why they are constantly hiring new drivers with their own trucks who want to take a shot at the "easy" money. Pretty much the only successes in this business are retirees who use the trips to cover their travel expenses to places they want to visit.
Uber and Lyft have been no different. They churn through drivers continuously because they are not making enough money. As the miles rack up (for full-time drivers) they forget to allocate depreciation for the miles. It hits them in the face when it comes to repairs and vehicle replacement.
The trick for Tesla will be to convince the public that the BEV is worthy of a premium price for (pick your reason). Without a premium price, it will be very difficult if not impossible to make a ride-hailing service profitable until drivers are out of the picture. Of course, then there will be equal competition from other providers. Uber and Lyft could easily go bankrupt before then unless rates increase to riders. I think Tesla should stick be being the vehicle manufacturer and leave this money-losing business to others.
In your China example, the company started in one city so that they could get enough depth to support a service. I believe Tesla will have a hard time finding enough owners in any given city to support 24/7 operations with adequate coverage to minimize rider wait times. The average Tesla buyer makes over $100,000 a year. You really expect those people to burn up their cars and free time making $10/hr or less?
Artful Dodger
"Neko no me"
I have personally witnessed a Waymo vehicle stop abruptly twice in a row. It clearly thought a pedestrian sign in the middle of the road was an actual pedestrian. So as the article with GM suggests above, when the Waymo vehicle was in motion, it could not distinguish a person from a sign... ie moving vs stationary. That's a showstopper and exactly why Waymo forces passengers to sign an NDA. I think I'll try to set that up again and video tape it. It has to do with them having to go around me a bit so that their position is altered. It may show that when things change just slightly from the 3D model, they are incapable of adjusting their response... just sayin'
How TF does Business Insider have TSLA down and in red in this ticker?
Elon Musk revealed that he's approved the Model Y SUV prototype for production — but it's not the upcoming Tesla vehicle he's most excited about
Elon Musk revealed that he's approved the Model Y SUV prototype for production — but it's not the upcoming Tesla vehicle he's most excited about
What prevent from that ride hailing company to replace with their fleet with base Tesla model 3? Their current car cost more than 30k$, use pouch battery with air cooling, struggle to get a charge in hot days.
mekberg
Member
Love me some Gorgon City. Comes up frequently in my "Disclosure Radio" channel in the car.
That isn't their job. Just like all bureaucrats they just do what bosses expect them to do.
Raise it to what?
At your $8 that is a P/E ratio of 37.5 for $300 SP. That exceeds almost every company in the tech industry. Most auto OEMs are in the single digits. How high would you have them price TSLA since Musk was clear that growth from here forward will be internally financed?
Sure, but then that tax should be applied to all vehicles, not just EVs. Move the gas tax to existing to pay us all back for the otherwise free dumping gas cars get and have every vehicle pay the same amount for roads(this would effectively subsidize things like semi trucks, but that’s kinda ok, given the economic service they provide).
But on a positive note I've noticed quite a few more Teslas showing up on TV shows recently. For instance, on Chicago PD last night, the bad guy was being driven in a Model X (by a good guy... kinda) and it was way cool to see one of the falcon wing doors open.
That's great, cheap advertising. I suppose the cops kept the car though...
That's great, cheap advertising. I suppose the cops kept the car though...
Buckminster
Well-Known Member
I remain underwhelmed. I appreciate that a boring call maybe positive if Elon can keep it up for a few quarters but I think it will take that long for the analysts to trust him. They are voting with their feet at the moment and I don't see it as good for SP in the short term. In addition, the mission is to accelerate the rest of the market rather than capitulate to the SEC etc. I want the dream - the inspirational journey is almost as important as my wallet..
Another bone I have to pick is this talk of P/E ratios of 20. I think 50 is conservative all things considered. Short of an apocalypse, how is this company not a multi-trillion dollar company in 10 years? The ~10th biggest product (solar roof) could be worth 100Bn+ of market cap by then if it meets half of it's potential.
This has been a painful year - I need my exoneration now! FYI, 007 is paying me handsomely for this...
That's sort of interesting. As it stands, Tesla does basically ZERO marketing or advertising, relying solely on owners and showrooms for building awareness and interest. It would be interesting if internally at TESLA they had moved to some types of product placement, in shows, movies, etc., in some fashion. ti's usually a more complementary form of advertising, not in lieu of usually, but it would be interesting is somewhere internally they had decided to put product placement in the mix for a start.
Chickenlittle
Banned
No the rate was the average rate per week in 3rd qtr. He did say he could not see them dipping below 5000 a week in response to what happens when credit goes away next yr (he didnt even bother to correct phil baboon that it decreases but doesnt go away)
Most auto OEMs are also reporting declining profits year over year, by double digit percentages, with 0 prospects for significant growth. Meanwhile, Tesla continues to significantly reduce manufacturing costs every quarter, at the same time as dramatically increasing production/delivery(per the ER, increasing the peak Model 3 output by 40% is just a matter of reducing downtime on the existing lines, with minimal capex).
Internally funded or not, the growth prospects for Tesla dwarf those of those other OEMs.
Chickenlittle
Banned
I agree that he got away without predicting is crazy good. How can you miss if not predicted. It was more a comment of the analysts not pinning him down. How can you possibly predict or model earnings without knowing that metric or even curoous to ask for it. We are already 1/3 of the way through the qtr and i am sure they already know november output. There is a potential for an enormous surprise
Nice try but I aint clicking on boomberg...bugerburg...bullshatberg..bolonyberg...bobsyouruncleburg ...bettyboopberg...butthurtberg...or even blooperrealberg.
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