Reason for the 6% drop: https://seekingalpha.com/news/3419949-tesla-plunges-deliveries-update-price-cut
And Apple is warning on Q1 results due to mounting tensions with China. Time to start getting active and aggressive with Puts.
The End of the Backlog. What we have here is that the US consumer demand at current prices can only support about 2-2.5K/week M3s once the backlog was cleared in possibly as early as November. They also had pulled forward demand, thus whoever just could bought their cars in December. The European homologation is still missing (that is a permit to sell cars with an Ipad in the middle, they not going to have it thus they have to redesign), so suddenly they have to cut back at least 2K/week M3 production. For the record they never made more than 5K on a continuous base, their average is about 4.7K. Lesson to be learnt: you can't produce more than what the market can buy...
Could you clarify this a bit? You're saying that it's likely no EU country will approve the M3 for sale? The Model S has the same central tablet (which I hated btw, the idea of having to navigate a touchscreen while driving seemed crazy) and it certainly was approved.
They submitted to the Dutch, and if the Dutch OKs it, it can be sold anywhere in the EU. But so far no car ever got permit without at least some kind of display in front of the driver. The model S has that display in the usual place, the M3 doesn't. Tesla promised European deliveries by the end of March. It takes 35 days to deliver to Europe, so they should be making cars right now if they want to keep their promise. Yet, they don't even have the permit... https://insideevs.com/tesla-model-3-not-approved-sale-europe/
Lol. Now I remember reading about that (I've driven a Model S but not M3). Talk about cutting corners...
Strong competition from Chevy and Kia. The Bolt may look like ass, but it's got enough range for a week's worth of trips to work. Also; https://finance.yahoo.com/news/tesla-stock-tanks-musks-job-223110713.html Tesla Stock Tanks on Musk's Job Cuts Email, But is TSLA Still a Buy?