Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[NicoV]

Absolutely massive price cuts to Model S/X. Reach under the $80k tax credit threshold is great for Model X, but will now also put downward pressure on Model Y prices.

As I astutely observed, used car prices rapidly falling in July and August predicted Tesla would have to make these kind of moves.

The FSD price cut should help margins a little bit, but I'm guessing most people get the monthly subscription anyways.

It seems almost certain now that Q3 will have even lower earnings than Q2. I wonder how long the market will let a company have a PE ratio as high as 73 when earnings growth is zilch.

Model S/X is 5-10% of Tesla sales. S/X-Pricing has just reverted to pre-pandemic levels. The other models are already below pre-pandemic price levels for some time. Impact of lower material prices comes in H2 23 (Zach). Margins will be ok. Certainly not in freefall.

 

[Zaddy Daddy]

Model S/X is 5-10% of Tesla sales. S/X-Pricing has just reverted to pre-pandemic levels. The other models are already below pre-pandemic price levels for some time. Impact of lower material prices comes in H2 23 (Zach). Margins will be ok. Certainly not in freefall.

Yup, not in free fall. Just no earnings growth, which the stock value is depedent on.

 

[zoomer0056]

sale of my trade-in

What, how do you sell a trade-in?

 

[Featsbeyond50]

As I astutely observed,

If you can't resist saying it out loud, at least form it into some kind of clever humble brag.

 

[CHGolferJim]

If that’s the frunk of a production truck, it looks like Ford designed the Cybertruck and Tesla the Lightning .

Assume all that is what gets hidden behind the cover, but it’s hard to see how much space is left for frunk storage.

 

[elasalle]

What, how do you sell a trade-in?

Shop around for the best price

 

[AndrewZ]

Model S/X is 5-10% of Tesla sales. S/X-Pricing has just reverted to pre-pandemic levels. The other models are already below pre-pandemic price levels for some time. Impact of lower material prices comes in H2 23 (Zach). Margins will be ok. Certainly not in freefall.

There is not a material that is cheaper today than it was pre-pandemic lol. Cheaper than the peak when the S and X prices peaked 2022 yes, but S/X prices are back at pre-pandemic levels and every commodity is way up from pre-pandemic prices.

But people shouldn't be surprised here when Elon is fully willing to move vehicles for minimal or zero margin. This is how big car makers operate, they all sell cars at cost but make money over the longer-term by servicing the existing fleet.

Teslas however are very low maintenance, FSD/autonomy need to be the drivers.

 

[traxila]

I think all these moves are on target.

Absolutely massive price cuts to Model S/X. Reach under the $80k tax credit threshold is great for Model X, but will now also put downward pressure on Model Y prices.

As I astutely observed, used car prices rapidly falling in July and August predicted Tesla would have to make these kind of moves.

The FSD price cut should help margins a little bit, but I'm guessing most people get the monthly subscription anyways.

It seems almost certain now that Q3 will have even lower earnings than Q2. I wonder how long the market will let a company have a PE ratio as high as 73 when earnings growth is zilch.

You have astutely noted the price cuts in the S and X, the lowest volume movers for Tesla, but seem to have missed the price increase for the redesigned Model 3.

 

[TesslaBull]

So Model X LR with tow package, ultra red, $72,500.....this should sell like crazy. By the same token, MS LR, ultra red for $67,500 woops no tax credit on S. wow. I wish I were in the market for a nice new car haha.

 

[uscbucsfan]

So Model X LR with tow package, ultra red, $72,500.....this should sell like crazy. By the same token, MS LR, ultra red for $67,500. wow. I wish I were in the market for a nice new car haha.

Where can you get a MSLR for 67,500? $74,990 is the lowest. Tax credits don't apply to the MS.

 

[GrandEnigma]

Price cuts to 2019 prices on models that do about 10k combined a quarter and that now make some trims eligible for the federal and some state credits should hopefully grow volumes. Which doesnt really matter when you are talking 100s of thousands of 3/Y over the same time frame.

 

[TesslaBull]

Where can you get a MSLR for 67,500? $74,990 is the lowest. Tax credits don't apply to the MS.

Woops, corrected. OK, well that makes X cheaper than S for those that qualify for tax credit.

 

[cliff harris]

The fact that the media are still pimping this made-up-nonsense about a glass house, but not reporting a big update on one of the most popular EVs on earth tells you everything you need to know about the media, and wall st. They are DESPERATE to keep in the good books of the corrupt muppets who run the legacy ICE companies and oil companies. Don't expect ANY impartial reporting by these clowns.
Eventually the truth will become overwhelming. The model 3 was already an extremely competitive car, being made in true mass production numbers. It just got better, and likely easier/quicker/cheaper to build.
Its hard to believe the BS on the internet about Tesla when you find out that half a dozen people on your street now drive one.

Wall st will do its usual nonsense today, and maybe Monday, but they cant hide from the facts forever. This is a BAD day for GM, VW, Ford and Toyota.

 

[cab]

The fact that the media are still pimping this made-up-nonsense about a glass house, but not reporting a big update on one of the most popular EVs on earth tells you everything you need to know about the media, and wall st. They are DESPERATE to keep in the good books of the corrupt muppets who run the legacy ICE companies and oil companies. Don't expect ANY impartial reporting by these clowns.
Eventually the truth will become overwhelming. The model 3 was already an extremely competitive car, being made in true mass production numbers. It just got better, and likely easier/quicker/cheaper to build.
Its hard to believe the BS on the internet about Tesla when you find out that half a dozen people on your street now drive one.

Wall st will do its usual nonsense today, and maybe Monday, but they cant hide from the facts forever. This is a BAD day for GM, VW, Ford and Toyota.

I predict entire U.S. market will be 100% flat from close today on Monday....

 

[thx1139]

Price cuts to 2019 prices on models that do about 10k combined a quarter and that now make some trims eligible for the federal and some state credits should hopefully grow volumes. Which doesnt really matter when you are talking 100s of thousands of 3/Y over the same time frame.

20K per quarter, but still these models have higher margins then the 3 and Y and should see considerable boost in sales. Particularly the X with the Tax Credit. I could see Q4 seeing the sales double so of course lower margin, but overall higher profit. That is if Fremont can boost production.

 

[FreqFlyer]

There was a rumor that the S/X are getting an update too, not to the extent of Highland. These vehicles are old and the platform they ride on is old. These vehicles will not be moving to cost lowering GIga Casting until there replacements, or if arrives. Next gen platform Open box manufacturing may be the best thing for these niche vehicles and Roadster.

 

[uscbucsfan]

There was a rumor that the S/X are getting an update too, not to the extent of Highland. These vehicles are old and the platform they ride on is old. These vehicles will not be moving to cost lowering GIga Casting until there replacements, or if arrives. Next gen platform Open box manufacturing may be the best thing for these niche vehicles and Roadster.

They had a major refresh in 2021. From everything I've read a minor refresh is coming with ambient lighting, but nothing major.

 

[GhostSkater]

There was a rumor that the S/X are getting an update too, not to the extent of Highland. These vehicles are old and the platform they ride on is old. These vehicles will not be moving to cost lowering GIga Casting until there replacements, or if arrives. Next gen platform Open box manufacturing may be the best thing for these niche vehicles and Roadster.

Model S/X have had a complete redesign os last refresh

Complete, it just looks similar, I think Elon Xssed(?) that only the seat rails were kept, so no, the platform isn't old, on the contrary

 

[uscbucsfan]

Model S/X have had a complete redesign os last refresh

Complete, it just looks similar, I think Elon Xssed(?) that only the seat rails were kept, so no, the platform isn't old, on the contrary

Agreed. New battery chemistry, motors, body, interior...basically everything was refreshed outside of seat rails, lol.

 

[MP3Mike]

There was a rumor that the S/X are getting an update too, not to the extent of Highland. These vehicles are old and the platform they ride on is old.

No, they are not. The platform was completely redesigned in in 2021.