sparcboxbuck
What happened to my ¤cash?
Most those cars will have limited runs and therefore not make much of a dent w/ Tesla.
The problems Tesla have are numerous though:
- While these limited runs wont affect Tesla sales much, other companies wont need to pay 200mil / quarter for ZEV credits. And without that, there goes their 300mil profit.
- cant make the 35k car at profit -> limited demand at 49k+
- They exhausted demand at 49k in Q2
- Q3 margins were a one-time thing as they sold all the 70k trim levels and exhausted that demand
- Now they're stripping batteries to make a 45k compromise... but margins will be even lower than Q2 (they lost a lot of money)
- Q3 was also propped up by a 1time 800mil sale of all their dealership loaners to Enterprise... theyve spun it as a new car sale but its actually a divestiture of assets and Enterprise will make that back every time Tesla pays them to provide a car during warranty work
- Speaking of warranty... theyre shipping cars with repairs already scheduled.
- in Norway - previously a huge market for them - theyve gained a reputation similar to Alfa Romeo
- Trade war has cut China off completely. They made something like 10 sales there.
- While theyre in a cash crisis with a ton of debt due Q1 of 2019, they have given up on capex, expanding service centers (see what happened in Norway repeating w/ US consumers), and dont even have the means to offer leases (the name of the game in the luxury segments that Three competes in)
- Theyre open to legal action regarding the fraudulent "Full Self Driving" package they've been selling for 5k that is not functional and never will be.
- All the false advertising on 35k pricepoint could also be interesting
Things Tesla has going for them:
- An irrational cult like following not unlike Apple.
Was just at Karma's HQ a couple of weeks ago for meetings. Talk about cult like following. Interesting stuff. Still no replacement for displacement. Pretty cars though. Beautiful lines on the Revero. Some pretty lines on some of the Teslas too. I'll still take my Audi... and my next Audi before the Tesla or Karma.
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