This week, Tesla reporting its first-quarter earnings. This doesn't come as a surprise as many technology companies are having their earnings calls. And, for TSLA, these phone calls can be quite revealing.
There was one thing a bit perplexing about this quarter's call, however. That's because the company's CEO, Elon Musk, had some interesting news to share.
Apparently, he claims, that consumers are confusing the all-new Model 3 and the existing Model S. According to Musk, people are left thinking the Model 3 is a successor to the Model S even though its base price will be approximately half.
Oh, and demand for the Model S and Model X is falling.
Does Elon Musk think consumers are THAT stupid? Considering that buyers are better informed than ever, it seems a bit silly to blame decreasing interest in the higher-end models on silly consumers. That said, I've got to ask:
Are you BUYING what Musk is SELLING?..."We have seen some impact of Model S orders as a function of people being confused" that Model 3 is the upgrade to Model S, Musk said on a conference call...
..."We want to be super clear that Model 3 is not version three of our car. Model 3 is essentially a smaller, more affordable version of the Model S with fewer features," Musk said on a conference call, adding buyers erroneously thought the Model 3 would be more advanced.
"The Model S will be better than Model 3," he added. "As it should be, as it's a more expensive car..."
...Still, customer deposits fell 7 percent in the quarter, which could suggest interest in Tesla's current product line, the Model S and Model X, is decreasing...
Read Article