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Notoriously, Tesla has raised the price of the Model 3 by 23% this year: https://insideevs.com/news/545712/us-tesla-model3y-prices-up1000/ https://insideevs.com

Notoriously, Tesla has raised the price of the Model 3 by 23% this year: https://insideevs.com/news/545712/us-tesla-model3y-prices-up1000/ https://insideevs.com/news/545712/us-tesla-model3y-prices-up... To hit their volume targets, either they'll need to cut prices again in the near future, or the price of all other cars in the market need to rise in lockstep.

KptMarchewa 5y ago
So, they raised the prices, massively expanded production, and still have insane backlog and you think it's a bad thing?
- sudosysgen 5y ago
  Yes. Because rising prices means that it's easier for their competitors to eventually overtake them. Having a backlog makes that even worse.
  - pedalpete 5y ago
    I'm sure I don't understand your logic. They raised prices which improves their margins. They can use that money to build more factories (which they are already building) and pay down debt, putting them in a stronger position. The backlog gets cleared by these new factories which can try to take up the excess demand. What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand, Tesla does. https://insideevs.com/news/530606/us-ford-mache-sales-august2021/ https://insideevs.com/news/530606/us-ford-mache-sales-august...
    - ac29 5y ago
      > What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand The company this story is about, Rivian, only started deliveries in the past few weeks and has delivered a negligible amount so far (a few hundred). They obviously intend to scale quickly, and they are hardly Tesla's only relatively new competition. It'll probably take a few years to see how the market shakes out.
    - Joeri 5y ago
      If you look up global EV marketshare tesla doesn’t even have 20% of the market. They are the biggest EV maker yes, but they don’t even own that large of a chunk of the EV market, let alone the car market. The way I see it people are buying the competitors vehicles but those competitors are better at manufacturing as well as each having a smaller chunk of the market and therefore can meet demand. Tesla can’t meet demand in part because they are not as good at manufacturing as they need to be. If tesla was worth their valuation they would need to dominate the EV market with 80+% marketshare, because that way when the EV market grows they will dominate the overall car market. But they’re not that large of a chunk of the EV market and they can’t ramp up volume or drive down prices fast enough to be on a trajectory to own EV. When all is said and done they will be a single digit player in the total car market, mostly catering to the luxury segment, and they will not realize enough revenue to get the profits that the stock price assumes. Which is not to say the stock will fall any time soon. As long as people believe Tesla can do it, it will stay high.
  - KptMarchewa 5y ago
    They raise prices before they can't meet demand, despite trying. If they were in a position where it would damage demand, they would lower them instead. They have enough margin and a lot of cash on hand to do that.
    - sudosysgen 5y ago
      They can't meet demand. That's the key issue. If they could meet demand they would be in a better position. Their demand is only about 20% of total EV marketshare and dropping, if they can't even handle 20% with a first-mover advantage that puts them in a bad position.

KptMarchewa 5y ago

So, they raised the prices, massively expanded production, and still have insane backlog and you think it's a bad thing?

sudosysgen 5y ago
Yes. Because rising prices means that it's easier for their competitors to eventually overtake them. Having a backlog makes that even worse.
- pedalpete 5y ago
  I'm sure I don't understand your logic. They raised prices which improves their margins. They can use that money to build more factories (which they are already building) and pay down debt, putting them in a stronger position. The backlog gets cleared by these new factories which can try to take up the excess demand. What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand, Tesla does. https://insideevs.com/news/530606/us-ford-mache-sales-august2021/ https://insideevs.com/news/530606/us-ford-mache-sales-august...
  - ac29 5y ago
    > What competitor is overtaking them? My understanding is that you can get any electric car you want, except a Tesla. That means people aren't buying the competitors vehicles. The competitors don't have demand The company this story is about, Rivian, only started deliveries in the past few weeks and has delivered a negligible amount so far (a few hundred). They obviously intend to scale quickly, and they are hardly Tesla's only relatively new competition. It'll probably take a few years to see how the market shakes out.
  - Joeri 5y ago
    If you look up global EV marketshare tesla doesn’t even have 20% of the market. They are the biggest EV maker yes, but they don’t even own that large of a chunk of the EV market, let alone the car market. The way I see it people are buying the competitors vehicles but those competitors are better at manufacturing as well as each having a smaller chunk of the market and therefore can meet demand. Tesla can’t meet demand in part because they are not as good at manufacturing as they need to be. If tesla was worth their valuation they would need to dominate the EV market with 80+% marketshare, because that way when the EV market grows they will dominate the overall car market. But they’re not that large of a chunk of the EV market and they can’t ramp up volume or drive down prices fast enough to be on a trajectory to own EV. When all is said and done they will be a single digit player in the total car market, mostly catering to the luxury segment, and they will not realize enough revenue to get the profits that the stock price assumes. Which is not to say the stock will fall any time soon. As long as people believe Tesla can do it, it will stay high.
- KptMarchewa 5y ago
  They raise prices before they can't meet demand, despite trying. If they were in a position where it would damage demand, they would lower them instead. They have enough margin and a lot of cash on hand to do that.
  - sudosysgen 5y ago
    They can't meet demand. That's the key issue. If they could meet demand they would be in a better position. Their demand is only about 20% of total EV marketshare and dropping, if they can't even handle 20% with a first-mover advantage that puts them in a bad position.