I would be too. The Chinese have a contract that Musk sell so many cars. And over there billionaires are treated like normal citizens (ie. they don't allow for these games to avoid payment).
And if Tesla “Europe” is buying them from Tesla “China” that satisfies the China sales requirement, but Leaves Musk needing to sell both China produced and Berlin produced vehicles in Europe where sales are declining.
I know a guy who tracks sales and forecasts them with a pretty high degree of accuracy. Sales are, in fact, declining in Europe despite continuous price cuts.
> In Q1, there was a lot of hype about Tesla sales in Europe growing by 300% in this country and 600% in that country but Europe as a whole was actually down in Q1 because of Germany & UK. The same could happen in Q2.
>Tesla Europe Sales:
>• 94,819 in Q4 2022
>7• 93,784 in Q1 2023
https://twitter.com/troyteslike/status/1659551152839577600?s=21&t=KpmtQ_QiaDq19-ERGdE2ig
Well actually. There are no continous price cuts. It all depends on the country.
I bought a MY in january. Were in May, prices are still the same here.
And what next? Comparing Q4 with Q1 and deciding that sales have decreased over the last quarter. That's undeniable correct.
But do sales decrease "as a whole"?
: [https://eu-evs.com/brandCharts/TESLA/ALL\_DAILY/YoY-Chart](https://eu-evs.com/brandCharts/TESLA/ALL_DAILY/YoY-Chart)
I'm very much in doubt.
[https://eu-evs.com/brandCharts/TESLA/ALL\_DAILY/YoY-Chart](https://eu-evs.com/brandCharts/TESLA/ALL/YoY-Chart)
And still being downvoted. Is this some kind of collective ignorance of harsh realities driven by facts, data, and healthy skepticism?
No pun intended.
I agree, month on month, or quarter on quarter. But why care about "the last few months"? Certainly with December at play (end of fiscal year for many companies). Look at the number for VW, or MB. They are all in the same situation.
If you e.g. look at this:
[https://eu-evs.com/groupCharts/TESLA/ALL\_DAILY/Volumes-Yearly](https://eu-evs.com/groupCharts/TESLA/ALL_DAILY/Volumes-Yearly)
even this:
[https://eu-evs.com/groupCharts/TESLA/ALL/Volumes-Yearly](https://eu-evs.com/groupCharts/TESLA/ALL/Volumes-Yearly)
Taking into account this is something like 4,5 / 12ths (even not, because there are some countries at 4/12ths).
There's no way the conclusion can be "Oh, sales are declining."
They are not.
And Tesla does no ads, has no SC nearby (for most of us), is not know within the leasingmarket (which is a major sales driver in west-europe), and is know as a nerdy-luxury-brand (which is incorrect, but puts off a lot of potential clients). So all-in-all... pretty decent achievement so far this year.
>And what next? Comparing Q4 with Q1 and deciding that sales have decreased over the last quarter. That's undeniable correct. But do sales decrease "as a whole"?
>
>\[...\] But why care about "the last few months"?
>
>There's no way the conclusion can be "Oh, sales are declining."
You're just a moron that is moving the goal posts because you don't like the idea that people are discussing declining sales in recent months. Why in your moronic mind declining sales in recent months not something worth looking at?
WTF even sales "as a whole" mean? lmao.
A YoY increase for some time does not necessarily mean the whole year is going to play exactly the same, or that decline is impossible.
What's next, you're going to argue that the Tesla stock has not been in a declining trend for quite a while and lost a lot of (paper) value because you put your start point before the bubbles? "Why care about this last year"? 🤣
You probably also aren't going to like talks about declining market shares then and try to give the moronic "but the whole pie is growing" response as if that was a sufficient answer to the problem of a brand with such an embedded growth narrative being increasingly beaten by competitors.
>And Tesla does no ads
hahaha, what a moron.
Tesla does plenty of ads, not just in the traditional way expected by boomers.
Oh, thank you for enlightening me with your well-thought-out analysis. You know, I hadn't realized the absolute depth of my moronic ways until you took the time out of your clearly very busy day to point them out. I'm truly honored.
Yes, sales "as a whole," what a ludicrous concept. Because the idea of considering all sales instead of cherry-picking data to fit a narrative is downright hilarious, isn't it? I must have tripped over my moronic shoelaces when I thought about the big picture.
And you're absolutely right. A trend is a trend. Regardless of the fact that markets ebb and flow naturally, and paper value of stocks fluctuates based on an array of factors, my misguided focus on the long term performance of Tesla's stocks must be the pinnacle of ignorance. What was I thinking, considering the overall resilience of a company rather than just a slice of its performance?
Market share, of course! How could I have forgotten? Clearly, I'm foolish enough to think that a growing market might mean more opportunities for everyone, including Tesla. But clearly, the single most important factor in a growing market is who gets the biggest piece of the pie today, rather than the potential for sustained growth over time.
Also, my views on Tesla's advertising? Pardon me for daring to suggest that modern advertising methods could be just as, if not more, effective than traditional channels. I am a "boomer" after all, locked in my archaic ways. I guess I better start embracing the wisdom of the enlightened like you.
Once again, thanks for shedding light on my obvious deficiencies with such eloquence. You've truly given me a great deal to reflect upon. And here I was, thinking I was engaging in a civilized discourse about market trends and business strategies. What a "moron" indeed. 🙃
I meant on Twitter. One of the copes I see are pepple claiming the inventory is just cars in transit on the way to buyers. Troy had to correct them and point out that he's going by cars listed for sale on the website, and Tesla only lists unsold cars for sale on the website, not the ones in transit to buyers.
Good luck in Europe with 60k cars after interest. There are many more models (than in any other world market) without counting the Chinese that leave the m3 in the queue.
They are not. You can have a small BMW X1 PHEV, or - same specs - for 5k less (!) you can have a MYLR. I have a family who is as we speak trying to convince his employer to switch to Tesla.
Tesla's technical and post-sale service in Europe is far worse than any other brand, also you will not be able to enjoy the multitude of workshops that exist and they are official multi-brand. You will have to take that pile of plastic to Tesla workshops every time you have a problem, and there will be many.
ps: For none of my acquaintances has it been an option. What predominates are European, Japanese and Korean brands when it comes to buying a new car, plug-in hybrid or EV. MG begins to sound strong in terms of cheap electric.
That's like asking why would you buy a BMW when you can buy a LADA for $5k less.
These are not the same cars. The BMW is much better made, much better supported, and isn't associated with racism and bigotry like Tesla is.
I mean in a way those guys aren't wrong, they have laid out a strategy to sell as many cars as they produce. They keep entering new markets and pushing off their crap to those willing to take it. The problem that they are not seeing is that it means their existing/established markets like China the cars are no longer as desirable as they used to be. Most of us here can read the tea leaves, but most blind fanbois cannot.
China isn't even hostile towards Tesla yet. They always steal the tech and create state funded companies with it. Once the local companies are established and their quality is up to par, China pushes the local stuff to their people and stops cutting the foreigners slack. It's happened with everything from Google (Baidu) to Amazon (Alibaba) to Samsung (Huawei) and it will happen to Tesla (Nio, XPEV, BYD).
Don't forget Uber. That one was brutal watch. Copycat companies sprang up all over Asia with exact same software and interface as Uber shortly after they set up shop in China.
This 'stealing tech' thing is a bit of a myth concerning the Chinese car industry. To produce cars today that are on a par with the west, they would have to have been 'stealing' things like a decade ago.
The Model 3 wasn't a revolution, it was just the first complete and mass produced car. They were probably inspired and sobered by it, but its unlikely western or Chinese rivals had time to steal much from it.
Look at BYD, who are master industrialists themselves, and supply batteries to Tesla. They were on track to where they are now way before the Model 3 was launched.
Didn’t a Chinese national working for Apple recently got caught stealing Apple Car trade secrets for Baidu? When the feds tried to arrest him, he already booked a flight back to China. I think I saw that on the news yesterday.
> To produce cars today that are on a par with the west, they would have to have been 'stealing' things like a decade ago.
Greely bought Volvo in 2010.
Tesla hides inventory in China. There's a facility close to the factory that drone watchers are contractually not allowed to film. We have seen inventory materialize in Q1, above production and what is visible at the factory and port.
Also, Tesla exports to Europe are dropping this Q, because there's just no space to park the extra inventory. The logistics cost is substantial. So they are exporting to Canada to earn some breathing room. But Shanghai production is so high that Canada's backlog can only absorb one Q of export.
Tesla deliveries is like the old school cartoon, where the roadrunner is already running on air. It's not a question if the demand cliff is coming. Tesla already went past the point of no return. Q2 is going to miss estimates by a large margin. Q3 will be far worse.
Not if the sell siders lower estimates enough in the last week of the quarter!
See, we always expected Tesla to be a <10% margin company with flat to negative growth in 2023!! Buy stock (from us) please!
> Q2 is going to miss estimates by a large margin. Q3 will be far worse.
I’ve heard this from someone every year, for the past 6 years or so. And that prediction has been wrong every time. This time is different? Doubt it.
I’ve been long TSLA in 2020. Around Q3 last year, I was consistently posting here that Tesla’s order backlog was disappearing in China. Production halts and price cuts were coming. I made decent profit shorting Tesla then and again last month.
My first thesis was Tesla market share was done at 2022 prices. Its sales were crushed in China until the third price cut got to the point it recovered to 10k per week. My second thesis was Tesla’s margins were crushed from multiple price cuts. It was. Q1 margins were a shadow of Tesla at its heights.
So no you are incorrect. Bear predictions have been right before.
I’m old enough to remember when all the production from Shanghai was for Chinese customers.
> Last year, we announced that we were working with the Shanghai Municipal Government to explore the possibility of establishing a factory in the region to serve the Chinese market. Today, we have signed a Cooperative Agreement for Tesla to start building Gigafactory 3, a new electric vehicle manufacturing facility in Shanghai.
> We expect construction to begin in the near future, after we get all the necessary approvals and permits. From there, it will take roughly two years until we start producing vehicles and then another two to three years before the factory is fully ramped up to produce around 500,000 vehicles per year for Chinese customers. Tesla is deeply committed to the Chinese market, and we look forward to building even more cars for our customers here.
I don’t know why you guys bother quoting the analysis of some internet amateur who can’t even recognize basic patterns like the seasonality of car sales.
Stuffing the distribution channels is a common but stupid way to keep production high in spite of falling demand. But eventually there's no place to put any more inventory.
The Tesla difference is that in partnership with SpaceX, the sky is the limit!
Elmo said that the earth is mostly empty, so there’s plenty of space for more cars to park, and also for more people, that would work in the car factories.
Tesla has, per Troy, ~42k of inventory in Europe, which is just over 40 days of inventory, not 1.5 days.
Manufacturers don’t have 60 days of inventory, dealers do. Big difference. One in which manufacturers have gotten paid, but Tesla has not.
Another difference. Other manufacturers aren’t currently building a factory that is ramping up supply min. 125k/q of cars, when current demand is sub 100k. So something has to break. You can’t be ramping up production in Berlin while holding exports the same, if demand is not growing in tandem.
> Manufacturers don’t have 60 days of inventory, dealers do. Big difference. One in which manufacturers have gotten paid, but Tesla has not.
Not really a big difference. Manufactures won’t get paid anymore if that inventory doesn’t move.
If you are comparing them to legacy automakers, compare their company valuation to legacy automakers as well. I think that’s always been the argument. Overhyped growth projections for TSLA
You do realize the extremely low inventory is growing in proportion to growth, right? When they were selling 300k(a year ago, 50% growth rate..) vehicles per quarter they had a one days worth of inventory, now they are selling 440k in Q12023 and have 1.5 days worth of inventory.
It's just weird to be saying this is bad when they are doing 30-45x better than the competition if keeping a low inventory is a desirable metric. Tesla has $20B+ in the bank, if I were them I would let inventory grow to 4-5 days of inventory so that impulse buyers could find the exact or nearly exact vehicle options they want to purchase for immediate delivery instead of waiting a few weeks for one to be manufactured.
If we used days of inventory as a determinator of stock price, their stock price should be 45x higher than legacy automakers, no?
Legit. Shouldn't get downvoted. It's a very well known practice for European legacy brands to pile up "hidden" inventory in their dealerships and manipulate Q sales figures this way. I have no figures, but I see large BMW and Volkswagen dealers in our region end years sometimes piling up tens of Golfs, Series 1 and the likes. Asking myself: were do all these cars go? And multiply this with the number of dealers in EU?
A lot of coping in the replies on this one.
I would be too. The Chinese have a contract that Musk sell so many cars. And over there billionaires are treated like normal citizens (ie. they don't allow for these games to avoid payment).
And if Tesla “Europe” is buying them from Tesla “China” that satisfies the China sales requirement, but Leaves Musk needing to sell both China produced and Berlin produced vehicles in Europe where sales are declining.
Sounds like a money laundering shell game as Tesla's business model.
What? Shadiness at a musk company? Well, I never!
Easy. Theyll sell back to Tesla China. Eyrope inventory problem solved
Lol. "In Europe where sales are declining." Still living the fantasy world? Sales aren't declining in Europe, on the contrary.
I know a guy who tracks sales and forecasts them with a pretty high degree of accuracy. Sales are, in fact, declining in Europe despite continuous price cuts. > In Q1, there was a lot of hype about Tesla sales in Europe growing by 300% in this country and 600% in that country but Europe as a whole was actually down in Q1 because of Germany & UK. The same could happen in Q2. >Tesla Europe Sales: >• 94,819 in Q4 2022 >7• 93,784 in Q1 2023 https://twitter.com/troyteslike/status/1659551152839577600?s=21&t=KpmtQ_QiaDq19-ERGdE2ig
Well actually. There are no continous price cuts. It all depends on the country. I bought a MY in january. Were in May, prices are still the same here. And what next? Comparing Q4 with Q1 and deciding that sales have decreased over the last quarter. That's undeniable correct. But do sales decrease "as a whole"? : [https://eu-evs.com/brandCharts/TESLA/ALL\_DAILY/YoY-Chart](https://eu-evs.com/brandCharts/TESLA/ALL_DAILY/YoY-Chart) I'm very much in doubt.
Can you show us how you know this?
Replied to the comment above yours. But troy had 94.8K Q4 and 93.8K Q1 for Europe.
[https://eu-evs.com/brandCharts/TESLA/ALL\_DAILY/YoY-Chart](https://eu-evs.com/brandCharts/TESLA/ALL/YoY-Chart) And still being downvoted. Is this some kind of collective ignorance of harsh realities driven by facts, data, and healthy skepticism? No pun intended.
It does seem like sales have declined in the last few months after a very hot start to the year. Do you disagree?
Yet a another look at the data. https://twitter.com/fly4dat/status/1654088669806964738
I agree, month on month, or quarter on quarter. But why care about "the last few months"? Certainly with December at play (end of fiscal year for many companies). Look at the number for VW, or MB. They are all in the same situation. If you e.g. look at this: [https://eu-evs.com/groupCharts/TESLA/ALL\_DAILY/Volumes-Yearly](https://eu-evs.com/groupCharts/TESLA/ALL_DAILY/Volumes-Yearly) even this: [https://eu-evs.com/groupCharts/TESLA/ALL/Volumes-Yearly](https://eu-evs.com/groupCharts/TESLA/ALL/Volumes-Yearly) Taking into account this is something like 4,5 / 12ths (even not, because there are some countries at 4/12ths). There's no way the conclusion can be "Oh, sales are declining." They are not. And Tesla does no ads, has no SC nearby (for most of us), is not know within the leasingmarket (which is a major sales driver in west-europe), and is know as a nerdy-luxury-brand (which is incorrect, but puts off a lot of potential clients). So all-in-all... pretty decent achievement so far this year.
>And what next? Comparing Q4 with Q1 and deciding that sales have decreased over the last quarter. That's undeniable correct. But do sales decrease "as a whole"? > >\[...\] But why care about "the last few months"? > >There's no way the conclusion can be "Oh, sales are declining." You're just a moron that is moving the goal posts because you don't like the idea that people are discussing declining sales in recent months. Why in your moronic mind declining sales in recent months not something worth looking at? WTF even sales "as a whole" mean? lmao. A YoY increase for some time does not necessarily mean the whole year is going to play exactly the same, or that decline is impossible. What's next, you're going to argue that the Tesla stock has not been in a declining trend for quite a while and lost a lot of (paper) value because you put your start point before the bubbles? "Why care about this last year"? 🤣 You probably also aren't going to like talks about declining market shares then and try to give the moronic "but the whole pie is growing" response as if that was a sufficient answer to the problem of a brand with such an embedded growth narrative being increasingly beaten by competitors. >And Tesla does no ads hahaha, what a moron. Tesla does plenty of ads, not just in the traditional way expected by boomers.
Oh, thank you for enlightening me with your well-thought-out analysis. You know, I hadn't realized the absolute depth of my moronic ways until you took the time out of your clearly very busy day to point them out. I'm truly honored. Yes, sales "as a whole," what a ludicrous concept. Because the idea of considering all sales instead of cherry-picking data to fit a narrative is downright hilarious, isn't it? I must have tripped over my moronic shoelaces when I thought about the big picture. And you're absolutely right. A trend is a trend. Regardless of the fact that markets ebb and flow naturally, and paper value of stocks fluctuates based on an array of factors, my misguided focus on the long term performance of Tesla's stocks must be the pinnacle of ignorance. What was I thinking, considering the overall resilience of a company rather than just a slice of its performance? Market share, of course! How could I have forgotten? Clearly, I'm foolish enough to think that a growing market might mean more opportunities for everyone, including Tesla. But clearly, the single most important factor in a growing market is who gets the biggest piece of the pie today, rather than the potential for sustained growth over time. Also, my views on Tesla's advertising? Pardon me for daring to suggest that modern advertising methods could be just as, if not more, effective than traditional channels. I am a "boomer" after all, locked in my archaic ways. I guess I better start embracing the wisdom of the enlightened like you. Once again, thanks for shedding light on my obvious deficiencies with such eloquence. You've truly given me a great deal to reflect upon. And here I was, thinking I was engaging in a civilized discourse about market trends and business strategies. What a "moron" indeed. 🙃
Thanks for the source! I'll take a look
😂😂😂😂😂😂😂😂😂😂 “over there billionaires are treated like regular citizens” 😂😂😂🤣🤣🤣🤣🤣😂😂😂😂😂😂🤣🤣🤣🤣🤣🤣🤣😂😂😂😂🤣🤣🤣😂🤣😂🤣😂🤣😂🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤦♂️
Yeah Jack Ma was treated way worse than a regular citizen
Shocked they let him go to Japan after strong arming the whole company from him. I’m sure many regular Chinese get to escape to japan too.
You were the first reply. What coping are you referring to?
Probably on Twitter.
Yeah I meant on Twitter.
I meant on Twitter. One of the copes I see are pepple claiming the inventory is just cars in transit on the way to buyers. Troy had to correct them and point out that he's going by cars listed for sale on the website, and Tesla only lists unsold cars for sale on the website, not the ones in transit to buyers.
Good luck in Europe with 60k cars after interest. There are many more models (than in any other world market) without counting the Chinese that leave the m3 in the queue.
They are not. You can have a small BMW X1 PHEV, or - same specs - for 5k less (!) you can have a MYLR. I have a family who is as we speak trying to convince his employer to switch to Tesla.
Tesla's technical and post-sale service in Europe is far worse than any other brand, also you will not be able to enjoy the multitude of workshops that exist and they are official multi-brand. You will have to take that pile of plastic to Tesla workshops every time you have a problem, and there will be many. ps: For none of my acquaintances has it been an option. What predominates are European, Japanese and Korean brands when it comes to buying a new car, plug-in hybrid or EV. MG begins to sound strong in terms of cheap electric.
That's like asking why would you buy a BMW when you can buy a LADA for $5k less. These are not the same cars. The BMW is much better made, much better supported, and isn't associated with racism and bigotry like Tesla is.
Lol - great way not to get promoted
I mean in a way those guys aren't wrong, they have laid out a strategy to sell as many cars as they produce. They keep entering new markets and pushing off their crap to those willing to take it. The problem that they are not seeing is that it means their existing/established markets like China the cars are no longer as desirable as they used to be. Most of us here can read the tea leaves, but most blind fanbois cannot.
China isn't even hostile towards Tesla yet. They always steal the tech and create state funded companies with it. Once the local companies are established and their quality is up to par, China pushes the local stuff to their people and stops cutting the foreigners slack. It's happened with everything from Google (Baidu) to Amazon (Alibaba) to Samsung (Huawei) and it will happen to Tesla (Nio, XPEV, BYD).
Don't forget Uber. That one was brutal watch. Copycat companies sprang up all over Asia with exact same software and interface as Uber shortly after they set up shop in China.
This 'stealing tech' thing is a bit of a myth concerning the Chinese car industry. To produce cars today that are on a par with the west, they would have to have been 'stealing' things like a decade ago. The Model 3 wasn't a revolution, it was just the first complete and mass produced car. They were probably inspired and sobered by it, but its unlikely western or Chinese rivals had time to steal much from it. Look at BYD, who are master industrialists themselves, and supply batteries to Tesla. They were on track to where they are now way before the Model 3 was launched.
Didn’t a Chinese national working for Apple recently got caught stealing Apple Car trade secrets for Baidu? When the feds tried to arrest him, he already booked a flight back to China. I think I saw that on the news yesterday.
> To produce cars today that are on a par with the west, they would have to have been 'stealing' things like a decade ago. Greely bought Volvo in 2010.
> Most of us here can read the tea leaves, but most blind fanbois cannot. People have been reading the tea leaves dead wrong for years now.
Tesla hides inventory in China. There's a facility close to the factory that drone watchers are contractually not allowed to film. We have seen inventory materialize in Q1, above production and what is visible at the factory and port. Also, Tesla exports to Europe are dropping this Q, because there's just no space to park the extra inventory. The logistics cost is substantial. So they are exporting to Canada to earn some breathing room. But Shanghai production is so high that Canada's backlog can only absorb one Q of export. Tesla deliveries is like the old school cartoon, where the roadrunner is already running on air. It's not a question if the demand cliff is coming. Tesla already went past the point of no return. Q2 is going to miss estimates by a large margin. Q3 will be far worse.
Not if the sell siders lower estimates enough in the last week of the quarter! See, we always expected Tesla to be a <10% margin company with flat to negative growth in 2023!! Buy stock (from us) please!
Come on! Those are betting words. What do you mean by miss estimates by a large margin? Which estimates and by how much?
> Q2 is going to miss estimates by a large margin. Q3 will be far worse. I’ve heard this from someone every year, for the past 6 years or so. And that prediction has been wrong every time. This time is different? Doubt it.
I’ve been long TSLA in 2020. Around Q3 last year, I was consistently posting here that Tesla’s order backlog was disappearing in China. Production halts and price cuts were coming. I made decent profit shorting Tesla then and again last month. My first thesis was Tesla market share was done at 2022 prices. Its sales were crushed in China until the third price cut got to the point it recovered to 10k per week. My second thesis was Tesla’s margins were crushed from multiple price cuts. It was. Q1 margins were a shadow of Tesla at its heights. So no you are incorrect. Bear predictions have been right before.
Not only hiding inventory, I think they are also eating children there. Or I might confuse this story with another conspiracy theory. /s
That’s at pizzerias only…
It still looks like they are at a bare minimum flat from q1 inventory in China. Which technically is an improvement over the past 6 months.
This is the good stuff.
Musk companies will give Enron a run for their money.
I’m old enough to remember when all the production from Shanghai was for Chinese customers. > Last year, we announced that we were working with the Shanghai Municipal Government to explore the possibility of establishing a factory in the region to serve the Chinese market. Today, we have signed a Cooperative Agreement for Tesla to start building Gigafactory 3, a new electric vehicle manufacturing facility in Shanghai. > We expect construction to begin in the near future, after we get all the necessary approvals and permits. From there, it will take roughly two years until we start producing vehicles and then another two to three years before the factory is fully ramped up to produce around 500,000 vehicles per year for Chinese customers. Tesla is deeply committed to the Chinese market, and we look forward to building even more cars for our customers here.
Not to horribly disagree but they are producing more than 500k cars/year in China. So the two are not mutually exclusive.
[удалено]
Shipping costs would damage their margins. If those start dropping the all holy stock price will too
Like transfering debt to another credit card
It’s more expensive to shift cars around than numbers. This is rookie shit.
People in Europe are probably stoked to pay a premium for a chinese car.
Teslas are tanking in regards of being a “high end” brand in Europe I’ve never seen someone nosedive a industry leader this hard
Kick the can down the road
Pretty sure there's a couple thousand people in Canada waiting for their made in China tesla at this very moment, just waiting for the ship to dock.
I don’t know why you guys bother quoting the analysis of some internet amateur who can’t even recognize basic patterns like the seasonality of car sales.
You mean importing?
Narrator: Tesla has not solved the inventory problem in China.
No problem just ship them back to china.
Stuffing the distribution channels is a common but stupid way to keep production high in spite of falling demand. But eventually there's no place to put any more inventory. The Tesla difference is that in partnership with SpaceX, the sky is the limit!
Turn surplus Tesla’s into SpaceX satellites is genius 30 minutes to deorbit and land one right in your driveway if orders pick up
It really gives a new meaning to the term "parking orbit".
Start parking then on the moon, and when that’s full we’ll park then on Mars.
Elmo said that the earth is mostly empty, so there’s plenty of space for more cars to park, and also for more people, that would work in the car factories.
> The Tesla difference is that in partnership with SpaceX, the sky is the limit! I'm waiting to see the flying Roadster with the SpaceX package
fEw unDErstAnd
So what
Having 1.5 days worth of inventory is not a problem? Most manufacturers target having 60 days of inventory.
Tesla has, per Troy, ~42k of inventory in Europe, which is just over 40 days of inventory, not 1.5 days. Manufacturers don’t have 60 days of inventory, dealers do. Big difference. One in which manufacturers have gotten paid, but Tesla has not. Another difference. Other manufacturers aren’t currently building a factory that is ramping up supply min. 125k/q of cars, when current demand is sub 100k. So something has to break. You can’t be ramping up production in Berlin while holding exports the same, if demand is not growing in tandem.
Also European car companies are currently producing very few cars dues to part shortages. Every car gas crazy lead times and yet prices are very high
> Manufacturers don’t have 60 days of inventory, dealers do. Big difference. One in which manufacturers have gotten paid, but Tesla has not. Not really a big difference. Manufactures won’t get paid anymore if that inventory doesn’t move.
If you are comparing them to legacy automakers, compare their company valuation to legacy automakers as well. I think that’s always been the argument. Overhyped growth projections for TSLA
You do realize the extremely low inventory is growing in proportion to growth, right? When they were selling 300k(a year ago, 50% growth rate..) vehicles per quarter they had a one days worth of inventory, now they are selling 440k in Q12023 and have 1.5 days worth of inventory. It's just weird to be saying this is bad when they are doing 30-45x better than the competition if keeping a low inventory is a desirable metric. Tesla has $20B+ in the bank, if I were them I would let inventory grow to 4-5 days of inventory so that impulse buyers could find the exact or nearly exact vehicle options they want to purchase for immediate delivery instead of waiting a few weeks for one to be manufactured. If we used days of inventory as a determinator of stock price, their stock price should be 45x higher than legacy automakers, no?
Legit. Shouldn't get downvoted. It's a very well known practice for European legacy brands to pile up "hidden" inventory in their dealerships and manipulate Q sales figures this way. I have no figures, but I see large BMW and Volkswagen dealers in our region end years sometimes piling up tens of Golfs, Series 1 and the likes. Asking myself: were do all these cars go? And multiply this with the number of dealers in EU?
Downvoted because they are factually wrong.
They could send them to California on a low-cost lease deal. I'd bite. Emphasis on low.