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The buried lede I hadn't seen in any headlines on the business news websites: 89% decrease in free cash flow. Ooof

by mixdup 1y ago

TheAlchemist 1y ago
And this is *before* the regulatory credits went away 3 weeks ago, and *before* 7500$ / car subsides go away end of September. In Q3 Tesla will start seriously bleeding money.
- mgiannopoulos 1y ago
  Do you mean Q4? Q3 will probably have good numbers due to people rushing to take advantage of the EV credit.
  - jjfoooo4 1y ago
    Wouldn't that behavior already be reflected in these numbers?
  - TheAlchemist 1y ago
    Thing is, Tesla is not making much on each car they sell now, given how many discounts they need to offer. They were making a lot of money on regulatory credits, but these are likely to be gone already (in theory the companies should continue to buy them, but the Bill signed by Trump removes any penalties for not doing so effective immediately). So yeah, sales may jump in the US (and will continue to crater in EU and China), but that won't do much for their profits. It can only help 'move the metal' as they say.
    - mgiannopoulos 1y ago
      China sales are recovering actually https://www.shop4tesla.com/en/blogs/news/tesla-china-verkaeufe-juni-2025 https://www.shop4tesla.com/en/blogs/news/tesla-china-verkaeu...
DoesntMatter22 1y ago
[flagged]
- breve 1y ago
  The business is suffering. Tesla has seen a large fall in European EV market share: https://eu-evs.com/marketShare/ALL/Groups/Line/All-time-by-Quarters https://eu-evs.com/marketShare/ALL/Groups/Line/All-time-by-Q... The decline corresponds with Musk interfering in European politics and performing fascist salutes at a political rally. Europeans aren't on board with swasticars. The brand damage Musk has done can only start to be repaired after he leaves Tesla. The bad reputation is going to stick until then.
  - DoesntMatter22 1y ago
    [flagged]
    - neogodless 1y ago
      Did we read the same article? > Tesla sales continued to go down in Europe in the first half of the year. The American EV maker recorded a 33% year-over-year drop in sales from January to June. > From January to June, Tesla sold 108,878 cars in the region, while Volkswagen moved 133,465 EVs, a massive 78% year-over-year increase. Look for the data table and note the heading "Difference from H1 2024" > Overall, the European EV market increased by 24% year-over-year
    - defrost 1y ago
      That's a highly selective read when the data shows Tesla dropping for the past six months, sales declining, even in June, and last month (June) likely not yet having a complete up to date third party picture across the board. The part left out from your statement about June: but that wasn’t enough to end the first half of the year in the first spot. In fact, out of the top five best-selling EV makers in June, Tesla was the only one to see a drop. With 32,605 cars sold, Tesla sales went down by 21% year-over-year in Europe. Meanwhile, Volkswagen went up 9.%, BMW by 16%, Skoda by 189% and Renault by 23%. confirms that Europeans are indeed moving away from "swasticars" in general despite some Europeans still buying a few.

The buried lede I hadn't seen in any headlines on the business news websites: 89% decrease in free cash flow. Ooof

by mixdup 1y ago

The buried lede I hadn't seen in any headlines on the business news websites: 89% decrease in free cash flow. Ooof

And this is *before* the regulatory credits went away 3 weeks ago, and *before* 7500$ / car subsides go away end of September. In Q3 Tesla will start seriously bleeding money.

mgiannopoulos 1y ago
Do you mean Q4? Q3 will probably have good numbers due to people rushing to take advantage of the EV credit.
- jjfoooo4 1y ago
  Wouldn't that behavior already be reflected in these numbers?
- TheAlchemist 1y ago
  Thing is, Tesla is not making much on each car they sell now, given how many discounts they need to offer. They were making a lot of money on regulatory credits, but these are likely to be gone already (in theory the companies should continue to buy them, but the Bill signed by Trump removes any penalties for not doing so effective immediately). So yeah, sales may jump in the US (and will continue to crater in EU and China), but that won't do much for their profits. It can only help 'move the metal' as they say.
  - mgiannopoulos 1y ago
    China sales are recovering actually https://www.shop4tesla.com/en/blogs/news/tesla-china-verkaeufe-juni-2025 https://www.shop4tesla.com/en/blogs/news/tesla-china-verkaeu...

DoesntMatter22 1y ago

[flagged]

breve 1y ago
The business is suffering. Tesla has seen a large fall in European EV market share: https://eu-evs.com/marketShare/ALL/Groups/Line/All-time-by-Quarters https://eu-evs.com/marketShare/ALL/Groups/Line/All-time-by-Q... The decline corresponds with Musk interfering in European politics and performing fascist salutes at a political rally. Europeans aren't on board with swasticars. The brand damage Musk has done can only start to be repaired after he leaves Tesla. The bad reputation is going to stick until then.
- DoesntMatter22 1y ago
  [flagged]
  - neogodless 1y ago
    Did we read the same article? > Tesla sales continued to go down in Europe in the first half of the year. The American EV maker recorded a 33% year-over-year drop in sales from January to June. > From January to June, Tesla sold 108,878 cars in the region, while Volkswagen moved 133,465 EVs, a massive 78% year-over-year increase. Look for the data table and note the heading "Difference from H1 2024" > Overall, the European EV market increased by 24% year-over-year
  - defrost 1y ago
    That's a highly selective read when the data shows Tesla dropping for the past six months, sales declining, even in June, and last month (June) likely not yet having a complete up to date third party picture across the board. The part left out from your statement about June: but that wasn’t enough to end the first half of the year in the first spot. In fact, out of the top five best-selling EV makers in June, Tesla was the only one to see a drop. With 32,605 cars sold, Tesla sales went down by 21% year-over-year in Europe. Meanwhile, Volkswagen went up 9.%, BMW by 16%, Skoda by 189% and Renault by 23%. confirms that Europeans are indeed moving away from "swasticars" in general despite some Europeans still buying a few.