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The Y will mostly cannibalize 3 sales, but will be good for a few quarters’ pop.
by new_realist 7y ago
The Y will mostly cannibalize 3 sales, but will be good for a few quarters’ pop.
- reaperducer 7y agoThat Model A is going to cannibalize Model T sales, but it will be good for a few quarters' pop. Ford is doomed.
- braythwayt 7y agoiPad started cannibalizing Macbook sales ten years ago. Apple is doomed, we'll see them fail RealSoonNow™️.
- deleted 7y ago[deleted]
- xkjkls 7y agoFord was making a profit when the Model T existed. Tesla isn't.
- adventured 7y agoFalse. Tesla earned a net and operating profit this quarter and last and looks set to continue the trend toward consistent profitability as they roll out their more profitable position in China. They've reached a sales scale where their operating income is annualizing to well over a billion dollars per year. Operating income was $359 million this quarter, and $620 million combined for the two most recent quarters. Free cash flow for the quarter was a billion dollars. They're sitting on $6.2 billion in cash now.
- xkjkls 7y agoYou're quoting non-GAAP numbers. It isn't an achievement to make money just by paying people in stock. Cash flow is also inflated by the use of long-term leases. Tesla lost $800 million this year. That should be the focus.
- reitzensteinm 7y agoWhile you can easily make a good argument that Tesla will be profitable from now on based on extrapolation, given that they lost money ($862 million) in 2019 your declaration of "False." like it's an open and shut case is misplaced (and rude). Parent cherry picked the facts for his argument, you cherry picked yours, neither of you have objective truth on your side. FWIW, I lean towards your argument more than theirs.
- deleted 7y ago[deleted]
- war1025 7y agoI thought the Y was most similar to the X? Am I missing something?
- deleted 7y ago[deleted]
- QuotedForTruth 7y agoIts pretty in between as far as size goes. But it shares many parts with the 3 and most importantly is much closer to the 3 on price. The 3 Dual Motor Long Range is about $48k and the Y is $50k. The X Dual Motor Long Range is $80k. So if it will probably take some sales from both the 3 and X. But X sales aren't very significant compared to 3 sales anyway.
- xkjkls 7y agoIn terms of margin the X sales are still significant. S/X sales are still the only thing that provides any consistent profit to Tesla.
- nordsieck 7y ago> I thought the Y was most similar to the X? IMO, all Tesla vehicles (so far) are pretty similar to each other. On the one hand, Y is a less expensive X. On the other hand, Y is a bigger 3 with a hatch back. I'm not an expert in automotive consumer behavior, but I have to imagine that Y will cannibalize some amount of 3 sales. I also don't think that will matter that much - there is so much demand for Tesla vehicles that they are battery limited.
- pkulak 7y agoIf that was a bad thing, no auto manufacturer would have more than one model.
- jsight 7y agoI think so too, and I think they know that. It sounds like they are "only" planning to ramp US production from the current rate of ~400k total units per year to just over 500k per year. Of course, with China coming online, that still leaves a net increase. It sounds like they may have backed away from some of the more extreme high end projections for the Y. It looks like worldwide production may double within 1-2 years, though.
- damon_c 7y agoIt will ~cannibalize~ eat Toyota Rav 4 and Ford Escape sales as well.