4 ms·
I agree with everything you've written, but none of it addresses my point. It is not accurate to say Tesla is production constrained, because if they were, the
by reitzensteinm 7y ago
I agree with everything you've written, but none of it addresses my point.
It is not accurate to say Tesla is production constrained, because if they were, they'd be focusing on higher end trims and charging more, and going from one spectacular quarter to another.
- zaroth 7y agoIt’s a simple fact that they delivered more units than they produced in Q3 2019. They can be production constrained across their full range of Model 3 ASPs, while it’s also true that they aren’t selling 100% fully loaded M3 Performance with FSDs each quarter. The thing you’re missing is the SAM is bigger when you have lower ASP options. So you grow your SAM and then become production constrained. Yes, you could shrink the SAM to no longer be production constrained, but since it’s profitable to sell at all price levels that would be a big mistake. Raising the price by $1,000 and a 10 week lead time is strong evidence of being production limited.