(Bloomberg) Model 3 Tesla has unveiled the first refresh of the Model 3 sedan and has cut the price of its premium cars in the US and China, a push by Chief Executive Elon Musk to boost sales for the electric-vehicle maker. The cuts follow reductions in price that Tesla made last month. They are set to take another toll on margins, which dropped to a four-year low in the second quarter.
Tesla discounts Model S by $30,000, and Model X by $41,000 All to unlock an EV subsidy Elon Musk wanted eliminated https://www.autoblog.com/2023/09/01/tesla-discounts-model-s-by-30000-and-model-x-by-41000/
cheaper the better, no one else can produce in this scale at this price. i am overpaying my wife’s porches taycan, 1 year lease remaining… but i don’t have private charge at home, that’s a problem for the city dwellers.
You keep going back to margins, but until recently Tesla had the industry's highest margins, which gives it the flexibility to adjust up or down today. You automatically assume demand problems, but every quarter of every year for the last 4 years Tesla sales are in ligne with projections and outstanding results.
The share price is lower today because the price cut is less than anticipated, according to some news, sell the news trades.
I don't assume anything - I read what Wall Street says and sorry margins have been going down recently. Why else do I keep repeating it? Actually I don't know why I bother repeating it - to you. There were at the top of the industry and may still be. But Wall Street doesn't buy top or best in class of anything. They may hold if things overall are not great for all companies. Flexibility lol. They buy and buy and buy ... growth in margins. You're the one assuming investors don't care about margins, they care about sales and being number one. They do, after they first look at margins.