Tesla stock sinks as price cuts hit profit: 'They're backed into a corner' | Hacker News Reader

Tesla stock sinks as price cuts hit profit: 'They're backed into a corner'

finance.yahoo.com

14 pointsbelter10 comments

If you go visit /r/askcarsales the salesmen there are saying that they won't take Teslas for trade-ins anymore, or they're getting stupid low valuations and going right to the auction house.

There's a lot of goodwill getting burned up here.

Good! Cheaper EVs for everyone as Tesla turns the dial from margin to market share. Get as many EVs into peoples’ hands as possible.

People forget, goodwill be damned.

I guess we can both agree that they're cheap.

Let's not forget that Musk wants to take Tesla private, whether or not this is on purpose, it helps him achieve that goal.. and perhaps you should be warned if you want to buy some..

What he says, what he thinks and what he does are not related.

Low demand is the issue. I highly doubt he want this private, but I dont doubt he wants people to think he's so confident he wants it private.

Demand dropping and margins will go down like a normal car company. And thats if you believe the margins, some people starting to think they're hiding a lot of opex as capex

> margins will go down like a normal car company.

Shouldn't Tesla's margins still be improving as they reap the benefits of economies of scale in battery manufacturing they've been burning money on building out?

It's far too early for the thin-margins phase AIUI, Tesla's just getting competition and maybe taking too long with their "gigafactories". It's also a bit difficult to capitalize on your scaling investments when "production has outpaced demand".

It’s more their margins are are ridiculously huge

Yes, their margins are huge, they have the capability to cut prices more than any other carmaker really.

Data point of one, but I was interested in buying a Tesla for my next car until I learned more than I ever wanted about Musk as a person and a leader of a company through how he's handled Twitter.

I can only assume similar approaches to problem solving are applied at Tesla, though perhaps less publicized. But more to the point, I want to minimize the amount of my money that goes towards that man based on complete misalignment of beliefs.

There's probably a business school case study here. I can't name any executive leadership at any other car company in existence. And thus it does not influence my decision on whether to consider cars from them.

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