4 ms·

No - The discounts are happening because of the Inflation Reduction Act that take effect in 2023. The IRA would give a $3500 tax credit for purchasing an EV,

by bfung 4y ago

No - The discounts are happening because of the Inflation Reduction Act that take effect in 2023. The IRA would give a $3500 tax credit for purchasing an EV, like Tesla Model Y. It takes about ~6 months for people who order a Tesla to get it delivered. For people who ordered in June, they want the IRA tax credit so many considered cancelling or delaying taking delivery until 2023. This Tesla incentive is to make those people take delivery in 2022 Q4 so that quarterly earnings report would smooth out, instead of dead Q4 and huge spike in Q1 2023. Edit: my parents are taking delivery this week and are now super happy. They considered cancelling a few weeks back knowing their delivery date was 1 week before 2023. Refs: https://finance.yahoo.com/news/tesla-offers-discount-car-models-051117307.html https://finance.yahoo.com/news/tesla-offers-discount-car-mod...

benj111 4y ago
Why would you want to maintain Q4 sales at the expense of profitability unless it is to maintain stock price though? And as it's obviously having the opposite effect there's no good reason for doing that.
- danaris 4y ago
  Doesn't mean they didn't think it would help the stock price...
- bfung 4y ago
  1. Employees, esp the ones with more authority and up the management chain, has a lot at stake in stock compensation. 2. Having and holding inventory, while not bad, creates a whole slew of internal supply chain challenges. Unsure if Tesla as a company actually knows how to deal with that well since most of their existence has been not holding any inventory of completed vehicles. It could cause company problems that would cost way more to deal with than they have people & investment to fix it with.
karmasimida 4y ago
I just checked their delivery date in California If you are buying Model Y, you can have readily available inventory If you are buying model 3, the delivery date is about a month The demand is absolutely softening
akmarinov 4y ago
They’re also doing discounts in China, though

by bfung 4y ago

benj111 4y ago

Why would you want to maintain Q4 sales at the expense of profitability unless it is to maintain stock price though? And as it's obviously having the opposite effect there's no good reason for doing that.

danaris 4y ago
Doesn't mean they didn't think it would help the stock price...
bfung 4y ago
1. Employees, esp the ones with more authority and up the management chain, has a lot at stake in stock compensation. 2. Having and holding inventory, while not bad, creates a whole slew of internal supply chain challenges. Unsure if Tesla as a company actually knows how to deal with that well since most of their existence has been not holding any inventory of completed vehicles. It could cause company problems that would cost way more to deal with than they have people & investment to fix it with.

karmasimida 4y ago

I just checked their delivery date in California If you are buying Model Y, you can have readily available inventory If you are buying model 3, the delivery date is about a month The demand is absolutely softening

akmarinov 4y ago

They’re also doing discounts in China, though