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Tesla deliveries surge


Gurgeh

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21 hours ago, akirby said:

Where does it mention making a profit from all those sales?

if Ford dropped their prices $10k on every vehicle they’d set sales records too.

For the last 2 years they have essentially doubled sales : Q2  2017 - 22,000 vehicles, Q2 2018 40,740 vehicles, Q2 2019 95,200 vehicles.  Any way you slice that it is impressive.  They did not drop prices $10k per vehicle.  They did start offering lower priced models.  Next year they expect to have their factory in China online.  The growth rate is of course cutting into profitability - but I suspect most companies would rather have that problem over having to close plants and cut workers because of falling demand.

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1 hour ago, msm859 said:

For the last 2 years they have essentially doubled sales : Q2  2017 - 22,000 vehicles, Q2 2018 40,740 vehicles, Q2 2019 95,200 vehicles.  Any way you slice that it is impressive.  They did not drop prices $10k per vehicle.  They did start offering lower priced models.  Next year they expect to have their factory in China online.  The growth rate is of course cutting into profitability - but I suspect most companies would rather have that problem over having to close plants and cut workers because of falling demand.

You just can’t see the forest for the trees.  Tesla has been at high volume the last year plus and they STILL can’t turn a profit.  That means the cars are priced too low for their current overhead and their overhead isn’t going to shrink in the future,  in fact I don’t think they’re doing enough investment in refreshes and new versions of existing vehicles,  only the new gee whiz stuff that brings in new investment capital.  And they’re selling credits which can’t go on much longer.  The point is it’s super easy to sell vehicles if you price them low enough.  It’s super hard to sell them and make billions in profits and support yourself long term.

Tesla the business is smoke and mirrors and either a shell game or a ponzu scheme depending on the perspective.  Ford and GM and the other volume mfrs will eat them for lunch now that technology and pricing has made electrified vehicles profitable.  But it won’t be at Tesla volumes immediately.  Those aren’t sustainable.

or to make an extreme example, how many Fusions do you think Ford could sell if they sold them at a loss of $10k per vehicle?  500K?  

Show me sales volumes WITH PROFIT and I’ll be impressed.

 

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Sales is just a shiny object to distract from making a profit. It's a great headline but I didn't hear anything about profit in Q2. Did I miss something? I'd love for them to succeed but I just don't see it as they know how to engineer a great car but don't how to run a car company or produce cars.

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Just noticed in another CNBC article (see link below) that Tesla's not going to release Q2 earnings numbers until August 7. Must be good news. Reminds me of the old joke about the salesman who looses $100 on every widget but plans to make up for it with volume. I guess the hope is that shifting production to China next year will lower manufacturing costs.

https://www.cnbc.com/2019/07/03/wall-street-on-tesla-deliveries-impressive-focus-remains-on-earnings.html

 

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59 minutes ago, Gurgeh said:

Just noticed in another CNBC article (see link below) that Tesla's not going to release Q2 earnings numbers until August 7. Must be good news. Reminds me of the old joke about the salesman who looses $100 on every widget but plans to make up for it with volume. I guess the hope is that shifting production to China next year will lower manufacturing costs.

https://www.cnbc.com/2019/07/03/wall-street-on-tesla-deliveries-impressive-focus-remains-on-earnings.html

 

Don’t you think if they were profitable in Q2 they would have already released that. At least a few Musk tweets. They are probably waiting to find a creative way to cook the books and minimize the damage.

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On 7/2/2019 at 10:22 PM, Gurgeh said:

Though I'm still a skeptic of Tesla's management, manufacturing, and profit prospects (but not that all-electrics are the future of the automobile), it's hard to find bad news in these results. 

https://www.cnbc.com/2019/07/02/tesla-q2-2019-production-and-delivery-numbers.html

All-electric vehicles are indeed a pillar of the entire automotive industry's future. Autonomous capability and mobility services are the others. Tesla certainly has its challenges. But it is better prepared for the future than any other major global automaker.

12 hours ago, akirby said:

Ford and GM and the other volume mfrs will eat them for lunch now that technology and pricing has made electrified vehicles profitable. 

It's Ford, GM, Toyota, VW, and the other incumbent automakers that should be worried. Tesla is far ahead of everyone else in the design, engineering, sales, and marketing of BEV. And there's no indication that Tesla's lead is threatened by the incumbents.

And Tesla has already proven that they have "technology and pricing making electrified vehicles profitable", here again Tesla is far ahead of anyone else making BEV. Last year, engineer Sandy Munro said that Tesla's system integration capabilities blew his mind and estimates that Tesla Model 3 has 30% gross profit margin based on a teardown his company did.

 

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16 hours ago, akirby said:

You just can’t see the forest for the trees.  Tesla has been at high volume the last year plus and they STILL can’t turn a profit.  That means the cars are priced too low for their current overhead and their overhead isn’t going to shrink in the future,  in fact I don’t think they’re doing enough investment in refreshes and new versions of existing vehicles,  only the new gee whiz stuff that brings in new investment capital.  And they’re selling credits which can’t go on much longer.  The point is it’s super easy to sell vehicles if you price them low enough.  It’s super hard to sell them and make billions in profits and support yourself long term.

Tesla the business is smoke and mirrors and either a shell game or a ponzu scheme depending on the perspective.  Ford and GM and the other volume mfrs will eat them for lunch now that technology and pricing has made electrified vehicles profitable.  But it won’t be at Tesla volumes immediately.  Those aren’t sustainable.

or to make an extreme example, how many Fusions do you think Ford could sell if they sold them at a loss of $10k per vehicle?  500K?  

Show me sales volumes WITH PROFIT and I’ll be impressed.

 

Well actually I can see the forest.  When is the last time we had a successful entry into the car manufacturing business?  This isn't a Ponzi scheme - it is trying to get into a mature highly capitalized business.  "Tesla has been at high volume the last year plus..."??  Sales for this quarter DOUBLED over same quarter 2018.  In fact they sold almost as many cars in last quarter as they did the entire year of 2017.  Not sure how Ford and GM will eat them for lunch.  Today there is NO manufacturer that is close to producing a car with Tesla's range or performance.  Everyone is chasing Tesla.  I agree with you they need to refresh their X and S - rumor has it. that is happening this fall.

As to smoke and mirrors - no.  We should all be rooting for an American Manufacturer who is pushing the envelope with cars, reducing the carbon footprint and helping us avoid sending billions to the Middle East to fund terrorists.

Do you really think Tesla is loosing $10,000 per vehicle?

I agree they are going to have to show a profit.  However, the problem with most companies today is they are more concerned with short term profits then long term gains.  Presently Tesla is reinvesting funds to support rapid growth.  Cannot say that is necessary the wrong strategy.

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