I’m not surprised since results tracked my numbers which I had published along with continued warnings that the company would struggle to sustain momentum in the second half of this year as all its latest rounds of ramp-ups and expansions into new markets started to lap last year.
As I long have warned, Tesla is working with an aging fleet with only one model left still growing. The rest of the market has been catching up fast and, frankly, doing EVs much better.
Indications are that Tesla’s long stretch of luck and lavish indulgence may be coming to an end. Musk’s billions, brags, insults, and rants have overshadowed growing concerns that can’t be ignored for much longer, like struggling Model 3 same store sales trends I’ve been tracking for years. Like Tesla’s shrinking market share in key markets from robust competition winning buyers spooked by its own notoriously poor build quality in it cars plus its dismal customer service. Like eroding margins from inflated levels which likely will worsen through next year.
Add emerging consequences from Tesla’s notorious false and misleading full-self-driving (FSD) claims, sneaky “fixes” of serious problems instead of recalls as required, dicey accounting, increasingly significant recalls as years of shoddy manufacturing and apparent cover-ups are revealed, and escalating government probes may expose all manner of ugliness to the world.
I long have projected that many, if not all these negative factors may begin to coalesce next year, particularly in the second half. If so, Tesla could struggle increasingly versus record results this year.
I'll have more discussion in an upcoming report, probably after Tesla files its 10-Q.
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I agree with most of the things you are stating here, except with "the rest of the market is doing EVs better". It is not, they might be doing better cars in terms of quality, luxury etc but no one is doing better EVs. Tesla has advantages in terms of EV powertrain, efficiency, car tech, manufacturing advantages (front and rear casting, HVAC system, virtual fuse box, to name a few, no radars, no ultrasonic sensors), safest cars on the market, I could go on. Also, what is the value of no dealership model, this one is a double sided sword but probably is a positive bottom line
I agree with most of the things you are stating here, except with "the rest of the market is doing EVs better". It is not, they might be doing better cars in terms of quality, luxury etc but no one is doing better EVs. Tesla has advantages in terms of EV powertrain, efficiency, car tech, manufacturing advantages (front and rear casting, HVAC system, virtual fuse box, to name a few, no radars, no ultrasonic sensors), safest cars on the market, I could go on. Also, what is the value of no dealership model, this one is a double sided sword but probably is a positive bottom line