Tesla’s Make-Or-Break Moment Is Fast Approaching


#1497

This loser has way more money than you and me, combined.


#1498

If you had to make that kind of comparison, does he have more money than Mr. Musk?


#1499

Buffet pivoted because tech has low PE ratios and ge resets tons of cash flow. At least, the ones he buys do.


#1500

Analysts expectation is 92000 cars, but Tesla delivered 90700 cars, 8% up from previous quarters.

On good news, share price drop is an opportunity. TSLA dropped 8% on news, bought further TSLA shares.


#1501

I am dead. Lost 10% overnight. Testicles is no good.


#1502

By all accounts revenue is going to grow, but company production estimate numbers miss. By a small amount 1700. Coupled with the 3,000 vehicle FUD we could see quite a price drop $2000 compensate tax credit loss, but realistically fundamentals are improving.

Since you have seen AAPL shares falling 90%, you should not be worried stock falling on good news. This price drop is panicky, but will not long last.

Any price touching $300/share is an opportunity to buy.


#1503

Elon Musk is no Steve Job. Anyhoo, my purchase price $309. RED.


#1504

Correct, Much more than him with Tesla, Boring Company and Space X :rofl:
Remember Space X is 25 B as of now value. When it is IPO, it may easily hit more. :joy:

DCA with $300 (97 shares) and make it green !


#1505

I’m sorry, but anytime someone cuts prices (for any reason) it usually is not a good thing…


#1506

Blind belief will not give us money, just analyze further why?

If the reason brings positive sales results, it is good.

Tesla’s $7500 IRS tax credit is over by Dec 31, 2018, and now the tax credit is available for $3750 (50%) from IRS. Buyers will not find it attractive (against competitors like Bolt) with lessor tax credit. TSLA reduces price (basically absorbing from profit margin) $2000 so that the effective bargain buyers get is $5750.

Next six months, TSLA may also reduce further price as tax credit may further come down.

It is strategic sales/marketing and still TSLA will make profit with 90k sales/quarter.

As I expected TSLA is spiking now. Just will earn some free money in few days…


#1507

So long mr > mc, is ok to cut price :smirk:


#1508

MR? and MC? What is that?


#1509

Marginal Revenue and Marginal Cost.


#1510

Yes, exactly like what Apple reduces $100 to $300 for trade-in last quarters. They hike the list price and try to reduce for sale purpose.

So far, TSLA had all these profits included (Hidden) in their price when government subsidy was in place. Now, they reduce when volume started increasing and subsidy is getting reduced.

This is common to any car seller and TSLA is not new to reduce price as sales strategy. :smiley:


#1511

I don’t get Apple’s strategy there. Studies show Apple customers have HUGE loyalty and are likely to buy an iPhone again anyway. They should offer a discount to Android users that switch. It might be a short-term financial hit but getting more users into the services eco system and creating more repeat customers would payoff huge long-term. Apple has always shown it’s willing to play the long-term game.


#1512

#1513

They had different rates fro each phones, competitors as well as their own phone. When entire market is on sale, due to holidays, every company needs to show some incentive so that procrastinators may end up exchanging the phones.

Apples has already increased the list price last version to this version. When additional profits are already hidden, giving discount for exchange is aim at sales pitch and is not negative.

For one example: I saw pair of scissors (https://www.amazon.com/gp/product/B000P0LNRE) was selling between Thanksgiving to Xmas at $8.97 with some discount, while actual price now is $5. Even with $5, they have enough profit with dispatch charges ! It would have been bigger profit with deals at $8.97 !

This is what apple or Tesla or any company follows as sales pitch.


#1514

Amazon doesn’t make a profit on every item. There was an article recently on items that are CRAP (can’t realize a profit). Retailers discount products to the point of losing money to drive store/web traffic. Everyone does electronic monitoring of competitors to do price matching. The goal is to get the customer to build a big enough basket of items that the order is profitable even if some items are unprofitable.


#1515

My guess is giving trade in discount encourage customers not to delay the purchase of a new iPhone. This also increases customer satisfaction. The traded in iPhone can be refurbished and sold in other markets or as spare parts, this means Apple doesn’t need to tie down manufacturing to build the older iPhones.

A typical Android user such as Harriet doesn’t have brand loyalty and will switch once the discount is off. Such customers are not likely to buy many apps or subscribe to iCloud and Apple Music.


#1516

So, when is “the approaching”? :laughing::laughing:

Come on guys! This is not a horse race where you let your horse run another round to see if he can beat the winner.

Has Tesla approached it? :roll_eyes:

All I know is that some people went to the corner with a sign “I will work for a hot meal” after losing lots of $ on stocks. :wink: