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TSLA Market Action: 2018 Investor Roundtable

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Why reduce prices if Model S and X are production limited?

Tesla is anything but the fraud, hucksters, etc many claim they are.


A Fair Price


“This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers. If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the US.

...


Instead, the price of a Model S in China is much lower than its competitors simply because we want to treat our Chinese customers just as well as we'd treat customers in any other country. That means the price of a Model S in China is the same as the price of a Model S in the US, adding only unavoidable taxes, customs duties and transportation costs. We're not even factoring in the cost of the free-to-use Supercharger network that Tesla will build across China.”

January, 2014
 
I think they are only production limited because Tesla realized demand was at a plateau. Maybe demand is now falling.

While I personally doubt that, even if it is I think it would be temporary, based on current availability and perhaps some recent negative publicity. Once the 3's become available for interested, on-the-fence buyers to drive, I believe it's going to increase substantially, especially with positive reviews like MT and Top Gear becoming more frequent and visible.

The one thing we need to be concerned about is the emergence of a Ralph Nader type character. Remember he killed the Corvair, which in it's second iteration was actually a pretty decent car. CR has that potential, but a win there might do the opposite... let's hope.
 
View attachment 303121
Even the Bears are useful sometime. Is the lack of insiders selling related to the incoming short squeeze?
I assume the question is rhetorical :D

I had suspected the same thing, based on the fact that Doug Field has been (automatic) selling 1000 shares in the middle of every month this year for Jan-Mar, and then starting April after PPS dipped consistently under $300, no sells. Last sell was Kimball at exactly $300 at the beginning of April. I suspect that

1) Doug (and potentially other execs) has a $300 floor below which he/they would not do automatic sell
2) that floor may have gone up recently, since in 1H of May we were above $300 and there were no sells.
 
Tesla to rally 50% because media negativity is ‘increasingly immaterial’: Baird

The deluge of recent negative media coverage on
Tesla is missing the real story, according to one Wall Street firm.

Baird reiterated its outperform rating for Tesla shares, predicting the electric car maker will make significant progress in raising its Model 3 production volumes.


"Negative headlines have increased substantially in the past month and, in our opinion, increasingly immaterial reports have dominated news cycles," analyst Ben Kallo said in a note to clients Wednesday. "We think we have hit a peak in negative coverage/sentiment, and believe shares could appreciate significantly with execution, which should coincide with an improvement in sentiment."

The analyst reaffirmed his $411 price target for Tesla shares, representing 49.5 percent upside to Tuesday's close.
How many times was Steve Jobs reported to be sick and/or dying which dropped the AAPL SP before it just stopped working to the point that when he really died it had little effect. Even the herd catches on after a multitude of being fleeced.
 
Tesla is anything but the fraud, hucksters, etc many claim they are.


A Fair Price


“This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers. If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the US.

...


Instead, the price of a Model S in China is much lower than its competitors simply because we want to treat our Chinese customers just as well as we'd treat customers in any other country. That means the price of a Model S in China is the same as the price of a Model S in the US, adding only unavoidable taxes, customs duties and transportation costs. We're not even factoring in the cost of the free-to-use Supercharger network that Tesla will build across China.”

January, 2014

That's noble of Tesla. I am not very proud of many of my fellow Chinese folks though. The dominate mindset is to buy expensive stuff for showing off ones wealth. Enjoying other's envy is the only thing that matters, the product features don't matter.
 
Donald J. Trump‏Verified account @realDonaldTrump 54m54 minutes ago
There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!

3,520 replies5,422 retweets21,874 likes

Oh he must mean this:

“April 13 (UPI) -- General Motors announced Friday it is cutting the second shift at a plant in Ohio, affecting up to 1,500 jobs due to declining Chevrolet Cruze sales.

It is the second job cut at the GM Lordstown Assembly Complex in less than a year and a half. The second shift will end June 15, and single-shift production was expected to begin June 18.l

Fire Away:cool:
 
I've been thinking about if Elon's tweet means that P will be produced at the 1,000/wk rate, and if so, for how long Tesla can keep that rate up. This variable has significant implications on ASP and Model 3 gross margin. Further, if all goes well, how quickly Tesla has leveraged Model 3 platform to introduce P3D at such high volume could bode well for Semi/Pickup and Model Y production in the coming years. Exciting times!
That quotation applies to the white interior not the P. BTW, my delivery time reduced when i changed the order to Black (Oops!! untrue!! It's just me hoping:oops:)
 
Tesla is anything but the fraud, hucksters, etc many claim they are.


A Fair Price


“This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers. If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the US.

...


Instead, the price of a Model S in China is much lower than its competitors simply because we want to treat our Chinese customers just as well as we'd treat customers in any other country. That means the price of a Model S in China is the same as the price of a Model S in the US, adding only unavoidable taxes, customs duties and transportation costs. We're not even factoring in the cost of the free-to-use Supercharger network that Tesla will build across China.”

January, 2014

Thought worth adding:

"We care about fairness, and we care about transparency. We care about advancing the cause of electric cars in China. And we care about doing the right thing for our customers – no matter where they live."
 
That's noble of Tesla. I am not very proud of many of my fellow Chinese folks though. The dominate mindset is to buy expensive stuff for showing off ones wealth. Enjoying other's envy is the only thing that matters, the product features don't matter.

helpful perspective Remus. Tesla/Elon could not say what you have directly, but, considering the last sentence here (I'd left it out in the earlier post) and other phrasing in the blog, seems like they likely considered that mindset, and tried to reframe the pricing of Tesla vs. other imported luxury vehicles as an indicator of respect for all.

"This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers. If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the US. But we're doing things differently, even if it means that some people might look at the price and mistakenly think it must somehow mean the Model S has less value than its competitors."

"And we care about doing the right thing for our customers – no matter where they live."

 
That quotation applies to the white interior not the P. BTW, my delivery time reduced when i changed the order to Black (Oops!! untrue!! It's just me hoping:oops:)

@jbcarioca Does this post change your opinion on whether the quote applies to white interior or P? Maybe both for the next 3 or 4 months?

bnw-png.303175
 
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