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In response to
"i was reading that the stock price is less about musk, a LOT more about flagging sales, esp in non-US/EU markets"
by
colin
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The answer to that will be seen when Q4-22 numbers are released in January
Posted by
TWuG
Dec 21 '22, 07:54
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But the sales issue in China is driven by how China structured their EV incentives last year. Tesla dropped prices to qualify, which was interpreted as lack of demand instead of having high enough margins to have price flexibility.
Put another way, Tesla addressed potential demand decline by preemptively dropping prices.
Add that any production that wasn't sold in China was sold in Europe because Tesla still has more demand than capacity.
Austin is up to 3000 vehicles a week of production, Berlin is up to 2000 a week, and a factory in Mexico and another in Canada should be announced in the next 6 months. If the company we're seeing flagging sales they wouldn't be investing in two huge new facilities and continuing to improve existing facilities.
Fremont is getting an update in 2023 so it can begin building the refreshed Model 3 which will include the new single piece castings seen in the Model Y as well as a refreshed interior and exterior designed to reduce number of parts and reduce costs.
IOW, there's a lot going on at Tesla other than Musk's ridiculousness. His personality has always been a double edged sword and where it used to be hubris backed up by results, it's now hubris in the face of a very public failure at Twitter. Divorce Musk from Tesla and the stock recovers because the company is as strong as it has ever been.
I pay a LOT of attention to the actual business of Tesla and I'm not worried in the slightest about the company and only slightly pissed that I've seen 6 figures in paper profit reduced to a very tiny paper profit on the 450 shares I own.
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