Tesla Model X And S Prices Drop By $8,000

Demand is cratering and Elon has to lower the price sharply to have any cash flow. Unfortunately, this also decreases or eliminates profit. The stock price will drop precipitously in the next week.

Not to mention killing resale prices as well.

Demand is cratering? Really?

I'd actually consider a Porsche Taycan, but it's too pricey.

@MD - What are they going for? Range?

Not counting the dealer bump that will obviously happen, it is my understanding that they will be in the $100-130K range.

My accountant finally forced me to pick a company car. This afternoon I picked up an Alfa Romeo Giulia Ti with literally every option ticked. It's blue with black wheels. I'm running it to Newport Beach tomorrow.

I love ICE powered cars like others on this site but the hate for Tesla here has always surprised me. From what I read in today's quarterly report there's no sign that demand is cratering. They just had another profitable quarter and the model 3 sales are robust. My garage has historically been filled with German cars like Volkswagen's, BMW's, Audi's and Porsche's. I've never owned an electric car but I suspect I and most of us will end up owning them before we kick the bucket. And I can't help but root for the home(American!) team here. I'd rather Tesla be the leader in the EV space then the Germans ... or Chinese.

The hate is largely a function of Elon Musk's abrasive personality and reprehensible business practices.

Discounts - always good news when you are trying to maximize profits.

In a year time, if Tesla is still around, Hertz premium section at the airport nearest you, will be featuring "Tesla S and X" next to all the fleet Audi's and Jag's.

Someone with zero business acumen would say this: "Discounts - always good news when you are trying to maximize profits."

Its sarcasm MD for gods sake,

Duhh I was agreeing with you, dimwit!

Model 3 sales are not robust. After back orders are filled new demand is weak. Margins are very thin and largely the result of creative accounting with tax credits. The current business environment is not sustainable. The $920 million note due in March will use up much of Tesla's cash.
And his CFO resigned - yep, another one.

Demand is weak? Are you sure?

The demand issue is new demand versus building down the current backlog. It would appear that the backlog of S and X orders has been worked down and new orders are not coming in to keep that backlog at a reasonable level. Hence the price changes, layoffs of production workers there, etc. If the Model 3 exhibits the same pattern that would be a serious problem. Further, now that Tesla is profitable it has to show a profit every quarter.

I was telling my kids that, prices on these Electric cars will drop like crazy
wait another 5 years

Yes, now that the shine is off the apple and because the resale pool is much larger, Tesla can no longer effectively 'prop-up' the resale value of their vehicles.

Over the next year - the depreciation curve of the Tesla models will mirror that of the other EV's. The Nissan Leaf has shockingly steep depreciation for such a cheap vehicle.
https://insideevs.com/5-year-depreciation-of-27170-means-used-nissan-leafs-are-a-deal/

The $100,000 Model S/X will be worth $40,000 at the end of 3 years and the $60,000 Model 3 will be worth $24,000 after 3 years.

@MD - yes, I was being sarcastic in my prior post.
Yes, I also strongly believe Tesla's will start showing up in rental car fleets at some point before this sh*tshow is over.

But.. it doesn't. Depreciation curve on the Model S is better than a MB S Class. Look it up.

Tesla's CFO just quit. Pretty disastrous.

From CNBC...

On the earnings call Wednesday, Musk said Ahuja (CFO) will "continue to be at Tesla for a few more months and will continue to serve as a senior adviser to Tesla for years to come."

Ahuja joined Tesla as CFO at the worst possible time: July 2008. He was with the company when it went public in 2010.

Tesla's finance team has seen high turnover in the past year with one chief accounting officer, Dave Morton, spending less than a month at the company.

Other long-time veterans have been resigning in the past six months, including Charles Mwangi, a senior director of engineering who had been with Tesla since 2012, and one of Tesla's first-ever sales hires, Jeremy Snyder, who left his role as head of global business development there in August, according to his LinkedIn profile.

This pattern of finance exec's leaving is similar to Enron's in their last year.