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What does this have to do with anything sorry ? If the current price was warranted why would the price be lowered regardless of the output ?

hervature 4y ago
Because the "current" price is always warranted based on supply and demand. If supply > demand, economics 101 says the price is too high.
- moomin 4y ago
  It _could_ be good news for Tesla, in that it means they can actually sell to all of their potential customers. Being supply-side constrained is usually a bad thing for a stock’s share price. Mind you, something’s inarguably up with the share price, even if it isn’t as simple as this discount.
  - jacquesm 4y ago
    That's some pretty interesting mental gymnastics right there. It could be good news, but most CEOs would interpret their stock price tanking as a result of having too much inventory as bad news. And those other brands can usually sell to their dealers so they can recognize the profits, Tesla can't do that hence these consumer discounts. And it isn't the people that wait for next year that are buying Tesla at this discount either, but it is the people that bought one two weeks ago that feel screwed by this extra discount that they have foregone by supporting Tesla in what arguably must have been one of its most difficult times so far.
  - bell-cot 4y ago
    _Could_ be good news, yes...if Tesla's share price was not at "assume they can still grow their market share 10X, plus enjoy 10X the industry-average per-vehicle profits indefinitely" heights. As is - the discounts bear a disquieting resemblance to cold facts contradicting those optimistic assumption.
jsemrau 4y ago
There is an assumption that Tesla has peaked as competitors are successful in gaining market share. Rivian's successful of Amazon launch [1], Lucid is starting in Europe [2], and NIO is opening up in Europe. Is Tesla, given that scenario, really a 372B company (as of Dec 23rd) or rather a 45B company like Ford and GM? [1]https://app.finclout.io/t/9Q2MQ8d https://app.finclout.io/t/9Q2MQ8d [2]https://app.finclout.io/t/mOaRRwY https://app.finclout.io/t/mOaRRwY
- mlindner 4y ago
  A generally unfounded one as Tesla has always done discounts/pushes of various sorts at the end of quarters and especially at the end of the year.
- x0x0 4y ago
  I think Tesla gifting the pickup truck market to Rivian and Ford w/ their Lightning is one of the biggest own goals in a long time. And I think Tesla should worry less about Lucid, etc than Volkswagon working out the kinks in their id.4 (what a terrible name that is), and Toyota's revamped Prius, which looks like a very appealing bridge car that can still use gas on road trips.
- karmasimida 4y ago
  Hyundai and Chinese competitors are ramping up quickly as well I would imagine major Japanese/American manufacturers to follow suite Tesla’s reign of EV is going to be over in next 5 years. Maybe they can differentiate more on software but it is not going to sustain their margin
  - bamboozled 4y ago
    I also think there is a market for less software in cars? My phone contains all the software my car needs and it does it better than any car I’ve used. I can also upgrade my phone without upgrading my car.
    - Tossrock 4y ago

hervature 4y ago

Because the "current" price is always warranted based on supply and demand. If supply > demand, economics 101 says the price is too high.

moomin 4y ago
It _could_ be good news for Tesla, in that it means they can actually sell to all of their potential customers. Being supply-side constrained is usually a bad thing for a stock’s share price. Mind you, something’s inarguably up with the share price, even if it isn’t as simple as this discount.
- jacquesm 4y ago
  That's some pretty interesting mental gymnastics right there. It could be good news, but most CEOs would interpret their stock price tanking as a result of having too much inventory as bad news. And those other brands can usually sell to their dealers so they can recognize the profits, Tesla can't do that hence these consumer discounts. And it isn't the people that wait for next year that are buying Tesla at this discount either, but it is the people that bought one two weeks ago that feel screwed by this extra discount that they have foregone by supporting Tesla in what arguably must have been one of its most difficult times so far.
- bell-cot 4y ago
  _Could_ be good news, yes...if Tesla's share price was not at "assume they can still grow their market share 10X, plus enjoy 10X the industry-average per-vehicle profits indefinitely" heights. As is - the discounts bear a disquieting resemblance to cold facts contradicting those optimistic assumption.

jsemrau 4y ago

There is an assumption that Tesla has peaked as competitors are successful in gaining market share. Rivian's successful of Amazon launch [1], Lucid is starting in Europe [2], and NIO is opening up in Europe. Is Tesla, given that scenario, really a 372B company (as of Dec 23rd) or rather a 45B company like Ford and GM? [1]https://app.finclout.io/t/9Q2MQ8d https://app.finclout.io/t/9Q2MQ8d [2]https://app.finclout.io/t/mOaRRwY https://app.finclout.io/t/mOaRRwY

mlindner 4y ago
A generally unfounded one as Tesla has always done discounts/pushes of various sorts at the end of quarters and especially at the end of the year.
x0x0 4y ago
I think Tesla gifting the pickup truck market to Rivian and Ford w/ their Lightning is one of the biggest own goals in a long time. And I think Tesla should worry less about Lucid, etc than Volkswagon working out the kinks in their id.4 (what a terrible name that is), and Toyota's revamped Prius, which looks like a very appealing bridge car that can still use gas on road trips.
karmasimida 4y ago
Hyundai and Chinese competitors are ramping up quickly as well I would imagine major Japanese/American manufacturers to follow suite Tesla’s reign of EV is going to be over in next 5 years. Maybe they can differentiate more on software but it is not going to sustain their margin
- bamboozled 4y ago
  I also think there is a market for less software in cars? My phone contains all the software my car needs and it does it better than any car I’ve used. I can also upgrade my phone without upgrading my car.
  - Tossrock 4y ago