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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.