1/ #Tesla bulls are cheering the 10th Chinese price cut this year, celebrating the "passing on cost savings to customers". Let's assume it's Musk's good heart the reason for the cuts, not #nodemand at current price levels*.
$TSLA $TSLAQ
$TSLA $TSLAQ
https://twitter.com/WPipperger/status/1295815273698795522
2/ Price cuts >> total battery costs.
Now imagine for a second how utterly inefficient production must have been if there could be such cost savings.
cleantechnica.com/2020/08/21/elo…
Now imagine for a second how utterly inefficient production must have been if there could be such cost savings.
cleantechnica.com/2020/08/21/elo…
4/ Now imagine if
a) price cuts are bigger than "efficiency gains", eating into the eterna 23% gross margin. If only 3% of the price cut eats into this, that's a 13% GM reduction.
b) relative margins stay at the eternal 23%, what do absolute margins do?
a) price cuts are bigger than "efficiency gains", eating into the eterna 23% gross margin. If only 3% of the price cut eats into this, that's a 13% GM reduction.
b) relative margins stay at the eternal 23%, what do absolute margins do?
5/ * #nodemand is being laughed at by bulls, quoting record sales. Sure, new geos & continuous, huge price drops drive demand
No bear has ever said that there is #nodemand at *any price point*. It's obvious that for $420, Musk could sell tens of millions of M3's. It's Micro 101.
No bear has ever said that there is #nodemand at *any price point*. It's obvious that for $420, Musk could sell tens of millions of M3's. It's Micro 101.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
