Breaking: What Crisis? Tesla Launches Model Y
Tesla launching a new model during a deadly pandemic while health officials & governments everywhere are warning people to say home sends the troubling signal that it must boost sales no matter what.
What if Tesla threw a Model Y party and nobody came?
Tesla (TSLA) launched its long awaited Model Y on Tuesday, in the middle of a historic pandemic when health officials and governments all over the world are telling people to stay home.
Tesla CEO Elon Musk Views the new Tesla Model Y as its unveiling in Hawthorne, California on March 14, 2019. Frederic J. Brown/AFP/Getty Images
Not that CEO Elon Musk seems to be concerned. He tweeted just two weeks ago “The coronavirus panic is dumb.”
He also is keeping the Fremont plant in California open even though county officials have asked businesses to close so employees and customers can stay safe.
Could it be that Tesla’s first quarter was already in trouble before it started given the huge volume pulled forward into the fourth quarter as buyers rushed to grab up the last of expiring subsidies, problems compounded with additional troubles as the quarter unfolded (as I projected, again, in Clearing Up Tesla Q419 Results on 1/30/20).
Or that the COVID-19 coronavirus is shutting down Tesla’s typical last-minute rush to generate most of its deliveries over the last few weeks of the quarter, as it does every quarter?
Indeed, Tesla launching Model Y when people should stay home and keeping a massive production plant open even when it puts employees and customers at risk sends the troubling signal that Tesla must boost sales no matter what to bring in whatever it can NOW.
So, who’s really panicking?
And, by the way, Musk is right to be concerned about what could be substantially weaker results—for the year.
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