Not me but other stock holders are faced with a Hobson's Choice: Traditional ICE vehicle - more expensive fuel but relatively declining market share Hybrid vehicle - less expensive fuel but more parts that can fail Electric vehicle - least expensive fuel but rapidly advancing technology In our free market, we have the options to store our excess capital. The first is declining as a percentage. The second is growing but faces a long term challenge. The third has long legs but we can only take a snapshot of what technology is available. Bob Wilson
Selling locks in a loss or minimizes future losses. The Q1 2024 financials are being released in three weeks. I sell TSLA when I have another expense that needs to be covered. Because of their technology, I'm also holding a higher risk, REE stock to see what they do. Bob Wilson
i hope this is incorrect: Exclusive: Tesla scraps low-cost car plans amid fierce Chinese EV competition
I really wish Tesla would establish a PR department. Far more effective to tell journalists “no” when they ask for confirmation.
I would rather see a $30,000 Tesla Model 3 Standard Range. I already have a $24,000 after trade-in, Tesla Model 3 Std Rng Plus. So I think better effort would be to optimize the lower trim, Model 3: Right size wheels and tires - save 100 lbs with longer lasting, affordable tires Casting front and rear structures - save another 100 lbs and reduces manufacturing cost Modular assembly - rear, sides, front, and seat-battery modules assembled at the end also reduces paint costs and improves quality 48 V electronics - saves weigh and eliminates a bunch of mechanical kludges LiFePO batteries - saves weight, cost, and longer life Gorilla glass - minimizes rock strike replacement Optimus robots - reduces labor costs and risks At $30,000, it will still under cut pretty much everything else. Then apply these advances to the existing models to make a low cost version of each. Bob Wilson
Always best to read the source; https://www.reuters.com/business/autos-transportation/tesla-scraps-low-cost-car-plans-amid-fierce-chinese-ev-competition-2024-04-05/ . . . Musk has wavered on the project before. In a biography of the entrepreneur released last year, author Walter Issacson reported that Musk in 2022 “put a hold on” the entry-level EV plans, reasoning that a Tesla robotaxi would make the car irrelevant. Musk’s advisors urged him to stay the course, the book said. . . . Every investor needs to follow their understanding for investing which has a lot to do with personal history. So I prefer leading edge technology but am sympathetic to those driven by other dreams. I'm not selling my Tesla stock because I don't see a better one to trade into. Subject to new facts and data, I'm in for the ride. As for the short term, Tesla has built an inventory in Q1 that has been announced to go on sale in Q2. The production expense has already been paid in Q1. The inventory reduction sale will be a revenue boost in Q2. This will affect margins in Q1 and Q2 but how badly we'll see in the quarterly financials. Bob Wilson
Found this video in an e-mail Tesla sent out: This may be a prelude to booking FSD in Q2 2024. Tesla held some part of FSD payments in abeyance while it was listed as "beta." I look forward to testing it. Caution about Fisker, and other EV startups going bankrupt. They are not Tesla and have (had) a different business model. It is bad enough that Tesla will not take a Fisker as a trade-in. Bob Wilson
i believe full self driving is too far off for any company to depend on it to save them. notjing wrong with r&d and working towards it, but tesla is going to need something to keep the momentum moving.
No problem as it took me three weeks to feel comfortable with Autopilot in 2019. Testing revealed the problems and became adept at handling them. Just a suggestion, you might approach Tesla about a 'test drive' in the future. If they ask for a referral code, plz use mine as I can get some 'Tesla bucks' (i.e., some free charging.) Otherwise, I'll have to hijack you in Florida and force you to drive FSD. <GRINS> Bob Wilson
WAPO "Net income for the three months ended March 31 fell 55 percent to $1.1 billion from $2.5 billion a year earlier, while revenue fell 9 percent to $21.3 billion. Tesla, which has implemented steep price cuts over the past year to maintain demand blamed the decline at least partially on the reduced sale price of its vehicles. The company also said it has been ramping up production of its Cybertruck pickup and updating its Model 3, leading to a decline in deliveries as it produces the new version." Stock up 1.8% in aftermarket close trading. ???
musk announces goal for affordable tesla deliveries in 2025. i believe this has to have their full focus.
As a consumer, this is great news. But as an investor, not necessarily so - but maybe in this case? Apple smartphones by unit sales are only ~20% of global marketshare, but they remain the profit margin king and don't sell any budget models. Market analysts may be estimating that somehow Tesla will still be able to squeeze out healthy margins from that affordable model. But market excitement may also be that they said "we have updated our future vehicle line-up to accelerate the launch of new models ahead of previously communicated start of production in the second half of 2025..." so advancing timeline and not one but 2 or more models. Could argue the bounce after-hours was more of a sigh of relief to some degree, analysts likely fearing worse following the sell-off of recently weeks. Hard to say how much robotaxi info motivated the rally which is also reported will be using the next generation "unboxed" manufacturing technique. Tesla Energy also had highest margins to date at 24.6%.
Initial impression from the Q1 audio, the '18% margin' means I'm not selling. But I want to read the transcript and Q1 financials. Furthermore, some past efforts have not been so successful . . . but you need to remember what they were. Bob Wilson
