Why not drive a Tesla?

[Midpack]

I'm surprised and amazed to hear there are cars available for almost immediate delivery, even inventory! I'm NOT calling BS, just surprised. What happened to the years long waiting lists? I saw a guy on YT yesterday who waited more than 2 years (798 days) for his Model 3.

 

[eroscott]

I'm surprised and amazed to hear there are cars available for almost immediate delivery, even inventory! I'm NOT calling BS, just surprised. What happened to the years long waiting lists? I saw a guy on YT yesterday who waited more than 2 years (798 days) for his Model 3.

Some are waiting for the base model so are holding off (see my post a couple up for prices/range). They did build some cars in the most popular options in anticipation plus the demo/store cars.

The more expensive Long Range (LR) were initially available (more profit; better business sense). Then they came out with the Mid-Range (MR) as it lets them sell more to the base / Standard Range (SR) buyers that would stretch.

The $7500 tax credit is ending and only counts for delivered cars. Tesla is maximizing sales. They can replenish the inventory/store cars easy enough as they are building 5-7K per week.

 

[Midpack]

Some are waiting for the base model so are holding off (see my post a couple up for prices/range). They did build some cars in the most popular options in anticipation plus the demo/store cars.

The more expensive Long Range (LR) were initially available (more profit; better business sense). Then they came out with the Mid-Range (MR) as it lets them sell more to the base / Standard Range (SR) buyers that would stretch.

The $7500 tax credit is ending and only counts for delivered cars. Tesla is maximizing sales. They can replenish the inventory/store cars easy enough as they are building 5-7K per week.

And I don't blame them one bit, they should make and sell whatever nets them the most profit/revenue - like any (public) company. They rode out some hard years, they should benefit after all that.

Though I'm often an early adopter on most things, I'm not when it's a very big ticket item, especially one that I expect some residual value - e.g. house, car, boat. We've had two hybrids (first in 2007), and we're closer to buying an EV, but not there yet...

Having almost everything on a touchscreen in the center of the car looks odd too, but I'm sure owners get used to it. Our Prius has almost everything in the center too, and adjusting wasn't hard at all.

 

[eroscott]

Now that the USA $7500 tax credit is ending (reduced for next several months) they are also anticipating large pent-up sales across the oceans. Those order/configuration gates have been opened. The Tesla Model 3 may be even more popular outside of the USA because of its size (Model S and X too big for roads/parking/etc). Plus Tesla has acquiesced to the CCS 2 (Combined Charging System) high speed high powered DC charging plug standard outside of the USA where it is gaining a lot of traction (by independent businesses, gov bodies, high gas prices see need for elec cars, etc). Since the Model 3 doesn't exist there they anticipated this and designed/are_building cars with that plug. They will change the smaller number of Tesla Superchargers at the non-USA sites to have both the CCS 2 and non-USA Menneke. NOTE: USA CCS 1 is similar to CCS 2 but the top part is based on 'our' SAE J1772 standard not 'their' IEC 62196 (aka Menneke).

Non-USA Tesla Model 3 charging port (note Tesla anticipated this as the size of the Model 3 opening is larger than the Model S/X).

Non-USA Tesla Superchargers retrofitted with CCS 2 and existing Menneke.

Comparison between (left) extended CCS 2 (aka Combo2 and (right) normal Type 2 (Menneke). CCS 2 is for high speed high voltage fast charging.

 

[explanade]

Wow, so $11,000 more for 40 miles more in range between the standard and mid range?

 

[Christine]

Boy , that Kona sure does look like a value compared to that 105K Tesla . Wonder if it is like years ago a magazine had an article on Porsche . They asked the same question why drive a Porsche . ?

Before I got mine I got lots of valuable info from Bjørn Nyland aka TeslaBjørn. He has had Teslas for many years and has lots of informative videos on Youtube. Most about Tesla but other electric cars too including the Kona. All in English.


https://www.youtube.com/user/bjornnyland/videos?view=0&sort=dd&flow=grid

 

[ERD50]

I'm surprised and amazed to hear there are cars available for almost immediate delivery, even inventory! .... .

.... . Tesla is maximizing sales. ....

Am I missing something? Maximizing sales, and there is inventory?

Now that the USA $7500 tax credit is ending (reduced for next several months) they are also anticipating large pent-up sales across the oceans. Those order/configuration gates have been opened. ....

Did you just try to tell us that reduced demand in the US is a positive, because now they have cars to sell to overseas?

Again, am I missing something? Or does that deserve a " "?

Steve Jobs had his "Reality Distortion Field", is there a name for this for Musk and his followers?

-ERD50

 

[RunningBum]

Am I missing something? Maximizing sales, and there is inventory?




Did you just try to tell us that reduced demand in the US is a positive, because now they have cars to sell to overseas?

Again, am I missing something? Or does that deserve a " "?

Steve Jobs had his "Reality Distortion Field", is there a name for this for Musk and his followers?

-ERD50

I don't follow Tesla that closely, but I suspect "maximizing profit" is what was meant. If you have no inventory, you may not be charging enough. Just a little inventory would seem to be the sweet spot.

 

[Midpack]

Am I missing something? Maximizing sales, and there is inventory?

Per post #481. And I went through the order process and never saw any mention of wait times, though maybe that only shows if you put down a deposit (I didn't)?

 

[ncbill]

$7500 tax credit for Tesla (& GM) cut in half January 1...can one take delivery of a Model 3 in the time remaining?

 

[eroscott]

I don't follow Tesla that closely, but I suspect "maximizing profit" is what was meant. If you have no inventory, you may not be charging enough. Just a little inventory would seem to be the sweet spot.

They have some inventory in demo/show cars at stores ... plus they produced extra of the most popular ones in anticipation. To clarify tho...

Midpack said: I'm surprised and amazed to hear there are cars available for almost immediate delivery, even inventory!

eroscott clarified to MidPack: So they could maximize the number of sales. As discussed the $7500 ends Dec 31st so they want to sell as many as they can (earning a profit as an obvious byproduct).

 

[explanade]

Have they turned profits?

I thought maybe it was about minimizing reported losses, though of course displaying they can sustain certain volumes is also important for the company's prospects.

 

[eroscott]

Have they turned profits?
I thought maybe it was about minimizing reported losses, though of course displaying they can sustain certain volumes is also important for the company's prospects.

3rd quarter 2018 -- https://www.google.com/search?q=tesla+turning+profit

 

[Ready]

They are producing more than there is demand for at this point, although it appears to be close. The availability of the $7,500 tax credit until the end of the year is keeping sales fairly strong, but you can still custom order a car today and get it before the end of the year, so they obviously don’t have much backlog. I think sales will drop significantly in the US after 12/31, which is why they began taking overseas orders recently.

 

[Midpack]

It’s too bad but the Q3 income statement had some irregularities. However, Tesla did produce their first sizable profitable quarter regardless (IIRC two previous quarters had small profits).

Summary

• Tesla reported blowout earnings in Q3.
• Further analysis reveals many of the methods used to engineer the quarter cannot be repeated.
• One mystery involving the balance sheet, and thus not directly impactful on the income statement was an unusual spike in Accounts Receivable.
• The 10-Q did little to answer the mystery, but we may now have an idea of what caused it and why.

https://seekingalpha.com/article/4219237-tesla-q3-accounts-receivable-mystery

 

[eroscott]

$7500 tax credit for Tesla (& GM) cut in half January 1...can one take delivery of a Model 3 in the time remaining?

Drop in 1/2 for 6 months.

 

[aja8888]

It’s too bad but the Q3 income statement had some irregularities. However, Tesla did produce their first sizable profitable quarter regardless (IIRC two previous quarters had small profits).


https://seekingalpha.com/article/4219237-tesla-q3-accounts-receivable-mystery

Even though I have an account on SA, I can't access the article unless I am a subscriber? I am signed in, but maybe I need a paid subscription too?

 

[eroscott]

It’s too bad but the Q3 income statement had some irregularities. However, Tesla did produce their first sizable profitable quarter regardless (IIRC two previous quarters had small profits).
https://seekingalpha.com/article/4219237-tesla-q3-accounts-receivable-mystery

a) FYI, seeking alpha has a questionable past with short-sellers and Tesla stock ... so just take things with a grain of salt and double check against other sources.

b) Profitability corresponds with real ramp up of Model 3 sales. Non-USA sales are expected to be even greater than USA sales for various reasons stated. Hopefull the Tesla Model Y (smaller SUV) will ramp up smoother than the Model 3 with their knowledge of this smaller platform and Germany company Tesla purchased for the robot automation (which ended up helping Model 3 part way thru).

c) See how the public likes the Model 3 compared to the top 10/ten list! Tesla also in top 4 even tho the S & X are early adopter luxury priced cars.

InsideEVs.com site info below.

 

[Mr. Tightwad]

I've really enjoyed your posts and this update. We're interested in Tesla, but a little scared too, so posts like yours are valuable.

One thing jumped out at me, though. Four sets of tires in 125,000 miles seems like a lot of tire changes.

Could it be due to road conditions where you drive?

He's used 3 sets of tires in 125,000 miles, getting ready for a fourth..

So averaging over 41k per set.

 

[Midpack]

a) FYI, seeking alpha has a questionable past with short-sellers and Tesla stock ... so just take things with a grain of salt and double check against other sources.

b) Profitability corresponds with real ramp up of Model 3 sales. Non-USA sales are expected to be even greater than USA sales for various reasons stated. Hopefull the Tesla Model Y (smaller SUV) will ramp up smoother than the Model 3 with their knowledge of this smaller platform and Germany company Tesla purchased for the robot automation (which ended up helping Model 3 part way thru).

Fair enough. Here’s another POV that seems to counter Seeking Alphas claim:

https://cleantechnica.com/2018/11/11/tesla-tsla-fud-accounts-receivable-10-q-mystery/

 

[Amethyst]

You're right; that's not bad.

He's used 3 sets of tires in 125,000 miles, getting ready for a fourth..

So averaging over 41k per set.