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Cars
Published on May 24, 2019 |
by Steve Hanley
May 24, 2019 by Steve Hanley
In the last quarter of 2018, Tesla delivered just over 90,000 cars. In the first quarter of this year, that number dropped to 63,000, a number that shocked the planet Tesla and plunged stock analysts into the spark. Many people do not seem to know or care that Tesla only reports a car sold when it was paid for by the customer and officially delivered. At least 10,000 models 3 were in transit to Europe at the end of March or were sitting on docks waiting to be delivered.
The numbers were not as good as those of the fourth quarter of 2018, certainly, but they were not as bad as many claimed. In fact, Model 3 still had a lot more sales than the second-best-selling mid-size luxury car, accounting for 15% of US luxury car sales, the third-best-selling car in California and the US.
Internal business reports seeing a copy of an email sent to the entire company by Elon Musk on May 23, an email that was leaked for the first time outside of China. Musk urges his troops to provide maximum effort in the last few weeks before the end of the second quarter. If that's the case, says Musk, the company has "a good chance" to beat the quarterly delivery record set at the end of last year. "To reach this goal [record]we need sustained production of 1,000 models 3 per day, "he wrote. Typically, Tesla refused to respond to BI's request for clarification.
Tesla shares have been battered recently, largely because the company recorded a substantial loss in the first quarter after two quarters of earnings. The latest tariff cycle of the US-China trade war has not helped either. The model 3 Fremont manufactured products are now subject to a 25% import duty in China, the two superpowers enjoying irreproachable status on the international scene.
That's why Tesla's decision to build a new Chinese factory in Shanghai is all the more judicious. Everyone with a higher IQ than broccoli knows that China is a zero point for the electric car revolution. Despite a contraction in 2018, it remains by far the largest new car market in the world and the Chinese government is firmly committed to electrifying its transport sector.
Tesla plans to start producing models 3 in China before the end of this year, which is a remarkable achievement in itself. This should be the end of efforts to attract Chinese customers while its prices are extremely high. According to rumors, the cost of production of a model 3 in China will be significantly lower than that of cars manufactured in the United States, perhaps even up to 50%.
Assuming that Tesla sets a new delivery record, will that alleviate the concerns of Wall Street analysts, people who do nothing and contribute nothing material value to society? Probably not. The edge reports that Adam Jonas, an automotive analyst at Morgan Stanley, told his clients at a conference call this week: "The supply exceeds the demand. They burn money. No one cares about Model Y. "(More information about this at the California time, at noon.)
Nobody cares about model Y? Sensational. It's shocking. Small SUVs are the most popular part of the new global automotive market and no one is interested in a full-range, 7-passenger, full-range version of Model 3, faster than a Lamborghini? We want some of what Jonah smokes!
Related: Tesla's interest goes up online
The stock market is driven by two contradictory forces – fear and greed. Over the last three years, greed has made it big, as investors have realized that Tesla is on track to become the most valuable company in the world.
Fear has now gained the upper hand, with some analysts predicting that Tesla's shares will continue to fall before reaching $ 36 per share. Both scenarios seem clearly absurd. If Tesla can prove that there is constant demand for its electric vehicles – a record quarter would help a lot – its course of action should recover quickly.
But investing in Tesla has always been a crazy race. If you are not ready to experience huge fluctuations in the price of your stock, you should probably invest your money in safer investments – like Apple. Oh, wait … ..
For more ideas on the email that would have been leaked, we recommend this article from the forum.
About the author
Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and wherever the singularity could lead him. His motto is: "Life is not measured by how many breaths we take, but the number of moments that take our breath away!" You can follow him on Google + and on Twitter.
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