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They are reducing profits to be competitive with Chinese EV companies. This was always going to happen. I predict it will drop until Tesla releases Optimus, th

They are reducing profits to be competitive with Chinese EV companies. This was always going to happen. I predict it will drop until Tesla releases Optimus, the $25k EV, or something else and then we'll see it go back up.

jimnotgym 3y ago
>This was always going to happen. Did Tesla say this in their forecasts? Edit: For clarity share prices don't go down because results were 'bad'. Share prices go down because results are worse than expected
- jimnotgym 3y ago
  Please could the downvoter explain why they think I'm wrong?
  - TheAlchemist 3y ago
    Not the downvoter, but I can probably explain - Tesla forecasts are usually completely bullshit. This time they did not provide guidance, only stating than the growth will be substantially lower in 2024. Results were 'not that bad' if it was for a normally priced car maker. Tesla shares are down not because they were 'worse than expected' - keep in mind the expectations were already slashed by WS this year. They are down, because it's becoming clear that a lot of extremely optimistic scenarios included in the valuations are nowhere near the realm of possible. Dojo, Optimus, next gen car, FSD... The cold truth which is becoming very apparent, is that Tesla has nothing new to show for at least the next 2 years. What they do have however, is the crushing competition coming, overcapacity, compressing margins, several serious investigations by authorities and a CEO who is showing the world what drugs can do to one's brain.
akmarinov 3y ago
Yeah, Optimus isn't something they'll release this decade. See FSD for why. They really effed up with the Cybertruck - that could've been the $25K EV or an EV bus or something useful.
- jsbisviewtiful 3y ago
  > They Wasn't the cybertruck mostly an Elon project?
  - kranke155 3y ago
    Yes, unfortunately, apparently one of his kids wanted a cool looking future truck to exist. He’s blown a gigantic amount of money on making this thing.
drannex 3y ago
I predict Tesla will never release Optimus, or at the very least nothing similar to it within ten years. They will not release a starting new $25k proper EV ever, and we'll only see it go back up at the exponential rate it was when Musk is removed.
hipadev23 3y ago
> I predict it will drop until Tesla releases Optimus, the $25k EV Ha ha. Sub $30K EV is the longest running con ever out of Musk. Notice the 2008: https://www.engadget.com/2008-06-30-tesla-motors-elon-musk-promises-sub-30k-all-electric-car-in-le.html https://www.engadget.com/2008-06-30-tesla-motors-elon-musk-p...
- JumpCrisscross 3y ago
  > Sub $30K EV is the longest running con ever out of Musk $25,000 of 2008 dollars is about $35,000 today. That’s a base Model 3.
  - ahahahahah 3y ago
    A base Model 3 is $39,000. Also, you should be using 2012 dollars, not 2008 dollars. A forward looking statement like "I'll do X for less than $Y dollars next year" should already be accounting for inflation in that $Y.
hindsightbias 3y ago
> with Chinese EV companies. No Chinese EV competition exists in the US.
- seanmcdirmid 3y ago
  Many Polestar and Volvo EVs are made in China. BYD has also set up a EV bus manufacturing center in the US (so technically Chinese, even if assembled in America to get around tariffs). Tesla definitely competes with Chinese EV companies in China as well as many non-American markets.
- rsynnott 3y ago
  As the US is only the third-largest electric car market, that is probably cold comfort for their shareholders.
ryandvm 3y ago
> I predict it will drop until Tesla releases Optimus, the $25k EV, or something else and then we'll see it go back up. Heh. I love the optimism. It reminds me of the too-far-gone political folks who think they're always *this close* to some devastating political maneuver from their side that is going to make everything right again. It's always "once the McJohnson report comes out..." These guys are always on the edge of their seats waiting for Musk himself to come down from on high and deliver the long-overpromised things he's been telling us about for a decade now.
- spacemadness 3y ago
  A lot of people are heavily invested and bought in at high valuation so the “copium” takes are going to be littering the internet for a while.
yowzadave 3y ago
Wouldn't a $25k EV be even lower-margin than their current offerings? It sounds like shares are dropping because investors think margins are too low because of price cuts--hard to see how an even-lower-cost model would help this.

jimnotgym 3y ago

>This was always going to happen. Did Tesla say this in their forecasts? Edit: For clarity share prices don't go down because results were 'bad'. Share prices go down because results are worse than expected

jimnotgym 3y ago
Please could the downvoter explain why they think I'm wrong?
- TheAlchemist 3y ago
  Not the downvoter, but I can probably explain - Tesla forecasts are usually completely bullshit. This time they did not provide guidance, only stating than the growth will be substantially lower in 2024. Results were 'not that bad' if it was for a normally priced car maker. Tesla shares are down not because they were 'worse than expected' - keep in mind the expectations were already slashed by WS this year. They are down, because it's becoming clear that a lot of extremely optimistic scenarios included in the valuations are nowhere near the realm of possible. Dojo, Optimus, next gen car, FSD... The cold truth which is becoming very apparent, is that Tesla has nothing new to show for at least the next 2 years. What they do have however, is the crushing competition coming, overcapacity, compressing margins, several serious investigations by authorities and a CEO who is showing the world what drugs can do to one's brain.

akmarinov 3y ago

Yeah, Optimus isn't something they'll release this decade. See FSD for why. They really effed up with the Cybertruck - that could've been the $25K EV or an EV bus or something useful.

jsbisviewtiful 3y ago
> They Wasn't the cybertruck mostly an Elon project?
- kranke155 3y ago
  Yes, unfortunately, apparently one of his kids wanted a cool looking future truck to exist. He’s blown a gigantic amount of money on making this thing.

drannex 3y ago

I predict Tesla will never release Optimus, or at the very least nothing similar to it within ten years. They will not release a starting new $25k proper EV ever, and we'll only see it go back up at the exponential rate it was when Musk is removed.

hipadev23 3y ago

> I predict it will drop until Tesla releases Optimus, the $25k EV Ha ha. Sub $30K EV is the longest running con ever out of Musk. Notice the 2008: https://www.engadget.com/2008-06-30-tesla-motors-elon-musk-promises-sub-30k-all-electric-car-in-le.html https://www.engadget.com/2008-06-30-tesla-motors-elon-musk-p...

JumpCrisscross 3y ago
> Sub $30K EV is the longest running con ever out of Musk $25,000 of 2008 dollars is about $35,000 today. That’s a base Model 3.
- ahahahahah 3y ago
  A base Model 3 is $39,000. Also, you should be using 2012 dollars, not 2008 dollars. A forward looking statement like "I'll do X for less than $Y dollars next year" should already be accounting for inflation in that $Y.

hindsightbias 3y ago

> with Chinese EV companies. No Chinese EV competition exists in the US.

seanmcdirmid 3y ago
Many Polestar and Volvo EVs are made in China. BYD has also set up a EV bus manufacturing center in the US (so technically Chinese, even if assembled in America to get around tariffs). Tesla definitely competes with Chinese EV companies in China as well as many non-American markets.
rsynnott 3y ago
As the US is only the third-largest electric car market, that is probably cold comfort for their shareholders.

ryandvm 3y ago

> I predict it will drop until Tesla releases Optimus, the $25k EV, or something else and then we'll see it go back up. Heh. I love the optimism. It reminds me of the too-far-gone political folks who think they're always *this close* to some devastating political maneuver from their side that is going to make everything right again. It's always "once the McJohnson report comes out..." These guys are always on the edge of their seats waiting for Musk himself to come down from on high and deliver the long-overpromised things he's been telling us about for a decade now.

spacemadness 3y ago
A lot of people are heavily invested and bought in at high valuation so the “copium” takes are going to be littering the internet for a while.

yowzadave 3y ago

Wouldn't a $25k EV be even lower-margin than their current offerings? It sounds like shares are dropping because investors think margins are too low because of price cuts--hard to see how an even-lower-cost model would help this.