Another Home Run? Tesla Says Model Y Will Debut Sometime In 2019

Tesla has had a home run? The Model X is a quality nightmare so much so that Tesla is slashing the price to bribe people to buy it. The Model 3 has bogus orders, people cancelling, not getting refunded, excuses being made for slow production, scathing remarks about quality. Yup! Tesla is the home-run king.

Of course it will be.

Perhaps Tesla should focus on running their business and delivering Model 3's?

The financial press seems to be under the impression that things are indeed looking increasingly dire for Tesla...there also seems to be 0.9%, 72-month financing advertised on Tesla's website. What's worse than a subprime auto loan? Perhaps a subprime loan on a Tesla.

"Late Friday Tesla released their quarterly 10-Q filing to the SEC. At first it was odd that neither the Investor Update Letter or the conference call broke out the Model S and X sales by model. The 10-Q also did not shed any light. Now we may know why. The biggest drop is U.S. deliveries was in the flagship Model S where sales are projected to have fallen by over 1,000 units in Q2 from Q1, down from 6,100 to 5,095 units (source: InsideEVs.com). Tesla only seems to appreciate transparency when it illuminates "good things."

Tesla recently announced a $3,000 price reduction on the Model X. No company on this planet lowers prices when demand is rising. They only lower prices when demand is falling, having exhausted all sales at the higher price point. This is exactly what is happening with both the Model S and X. With worldwide auto revenues falling (as you will see below) Tesla must act quickly to boost revenues.

The real shocker was Tesla has slipped 0.9%, 72-month financing into the order pages for both Model S and X on Tesla.com. The big players use this routinely to move slow inventory. If Tesla is doing so well with sales, why are they now subsidizing financing of new vehicles? We can assume some of the $1.5 billion in bond money now being raised will be spent financing new car sales. This completely erases any doubts that Tesla is now demand constrained."

Translated into Plain English: "We'll deliver 80 pre-order units on December 31, 2019, followed by a painfully slow production ramp-up, and we'll miss our self-imposed sales and production targets."

Plain English translation: Tesla will deliver 80 Model Ys on December 31, 2019, and then they'll miss their own self-imposed sales targets and ramp up targets in a painfully slow production process.

This is a fanboy site for Tesla, BMW and Lexus. I cannot deny Musk's impact on the industry, however Tesla sales are a tiny fraction of the industry. The Model S was groundbreaking, but the egg shaped X, meh. He has delivered, what, 20 Model 3s. He thinks they will sell better than the Honda Civic (current best selling sedan with a transaction price under $23,000) priced more than a loaded MB C300. And he just asked for $1.5 billion thru junk bonds and says he may issue more stock to raise more money.

This is a fanboy site for Tesla, BMW and Lexus. I cannot deny Musk's impact on the industry, however Tesla sales are a tiny fraction of the industry. The Model S was groundbreaking, but the egg shaped X, meh. He has delivered, what, 20 Model 3s. He thinks they will sell better than the Honda Civic (current best selling sedan with a transaction price under $23,000) priced more than a loaded MB C300. And he just asked for $1.5 billion thru junk bonds and says he may issue more stock to raise more money.

Let's see - Tesla has not yet started mass production of the Model 3 - and is not even producing the less expensive version "for a while". Next - they had to float an addition $1.5 billion in loans to keep in business. Now - they "say" they will have another model available in two years - So this begs the questions - 1 - Will they actually have the less expensive affordable versions of the Model 3 available then - or are they just a mirage - and 2 - Will they have the less expensive versions of THIS new model available at the outset as well. By then - the Federal Tax Incentive program will have long run its course for Tesla - so Buyers will be paying the full boat.

Lets see - The current limited production of the Model 3 now includes only the highest priced models - they do not yet have mass production of the less expensive models. AND - they needed an addition influx of $1.5 billion of cash to stay in business. ANd by 2019 - the Federal tax incentive program will have run its course so people will have to foot the entire bill of the car.

Now - they expect another model to "DEBUT" in 2019 = which could mean anything. It could mean that they will show some pre-production prototypes - or maybe even just some good sketches. How Likely is it that they will have real production and availability of another model - and how much additional money will they need to borrow to make this happen? About as likely as North Korea becoming the 51st state.

Lets see - The current limited production of the Model 3 now includes only the highest priced models - they do not yet have mass production of the less expensive models. AND - they needed an addition influx of $1.5 billion of cash to stay in business. ANd by 2019 - the Federal tax incentive program will have run its course so people will have to foot the entire bill of the car.

Now - they expect another model to "DEBUT" in 2019 = which could mean anything. It could mean that they will show some pre-production prototypes - or maybe even just some good sketches. How Likely is it that they will have real production and availability of another model - and how much additional money will they need to borrow to make this happen? About as likely as North Korea becoming the 51st state.

No article here and the 11 comments are missing. Has Tesla hacked us?

I have tried to post twice - and it will not work

Sure - and Donald Trump is planning to offer a major tax decrease for middle class and under by taxing those who make over $1million a year more - Ha Ha.

I'm old yet clueless. Someone please tell me how a company has not one but a series of homers yet even with government handouts, support, tax breaks, etc., is *still* losing money. I understand that for many businesses, scamming and grifting (not to mention exploiting workers) is more attractive than making an actual profit. Still, I don't get it.