As I expected, demand momentum has not been restored—no matter how low Tesla’s prices have fallen. But since Tesla has no Plan B, all it can do it keep cutting prices.
Now, more than 6 weeks into Q2, Tesla TSLA 0.00%↑ model prices are dramatically lower after several rounds of substantial and continuing price cuts, with Model Y now down 29% and Model 3 down 15% vs the first of the year.
Cuz nothing screams “insane demand” like plunging prices.
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Tesla's Q2 Is Already In Trouble
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I warned back in January that the market was wrong to promote that plunging prices on every Tesla TSLA 0.00%↑ in every market was bullish (see my report Tesla’s Demand Problems Aren’t Going Away)
Sure enough, Q1 deliveries trailed previous guidance & market expectations, leading to reduced market ests for Q1 results due out later today (see Tesla Q1 Deliveries "Beat" Rapidly Falling Market Estimates But Miss Management Guidance)
As I expected, demand momentum has not been restored—no matter how low Tesla’s prices have fallen. But since Tesla has no Plan B, all it can do it keep cutting prices.
Now, more than 6 weeks into Q2, Tesla TSLA 0.00%↑ model prices are dramatically lower after several rounds of substantial and continuing price cuts, with Model Y now down 29% and Model 3 down 15% vs the first of the year.
Cuz nothing screams “insane demand” like plunging prices.
Stay tuned.