Latest / Elon Musk Podcast / Tesla Forced to Lower Prices Again

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Tesla Forced to Lower Prices Again · Elon Musk Podcast

• 0:01
  Hey, everybody, welcome back to the.
• 0:03
  Elon Musk podcast this. Is a show where we discuss.
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• 0:58
  Tesla has once again reduced its vehicle prices and introduced
• 1:02
  special offers aimed at enticing buyers following a report of
• 1:05
  disappointing vehicle deliveries in the first quarter of 2024.
• 1:09
  This news comes alongside adjustments by analysts to
• 1:12
  Tesla's full year earnings forecast leading to a rise in
• 1:16
  Tesla shares. Now, in a notable move, the
• 1:19
  electric vehicle behemoth known as Tesla slashed the prices of
• 1:23
  its Model Y vehicles in Australia by over 9%, setting
• 1:27
  the starting price of approximately $42,240.
• 1:31
  This decision coincides with a surge in electric vehicle sales
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  in Australia, where Tesla ranks as the sixth most popular
• 1:38
  automotive brand. Now the price reduction in
• 1:40
  Australia is part of Tesla's broader strategy to remain
• 1:43
  competitive, evidenced by the introduction of a 0% financing
• 1:47
  offer on the Model 3 and Model Y models in China till the end of
• 1:51
  April. Now this marks Tesla's first
• 1:53
  foray into interest free promotions in China and the
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  electric vehicle market globally.
• 1:59
  Now contrarily, Tesla has raised the prices of all Model Y
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  variance in the United States and Europe and also in China,
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  despite some existing incentives coming to an end.
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  Nevertheless, significant discounts on the Model Y
• 2:11
  inventory remain available in the US and other markets.
• 2:16
  Tesla stock experienced a 1.6% increase reaching 171 .5 and
• 2:23
  these pricing adjustments and during these pricing adjustments
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  and this files a rebound where the stock went up by 1% to 100
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  and 6838. Now the company's stock
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  purchased activities by Kathy Wood which involved acquiring
• 2:37
  319,000 shares over 2 days also contributing to the stock
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  movement. Now to keep its sales momentum
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  going, Tesla has aggressively reduced prices and offered
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  discounts throughout 2023 and also 2024, causing a significant
• 2:54
  dip in auto gross margins from a high of 30% and quarter 4/20/21
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  to below 20%. And following Tesla's
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  announcements of lower than expected global deliveries of
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  386,810 vehicles in quarter one, HSBC revises Tesla price target
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  downward, maintaining a reduced rating on the shares.
• 3:15
  Now this report has sparked a wave of criticism for both
• 3:19
  supporters and also skeptics, attributing the poor performance
• 3:22
  to challenges in the production ramp up and factory shutdowns.
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  Now, analysts have adjusted their 2024 earnings projections
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  for Tesla downwards, indicating a potential second conservative
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  year of profit declines for the company.
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  The revised forecast reflect a more than 26% reduction in EPS
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  consensus estimates since the end of 2023.
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  And despite A disappointing first quarter, expectations for
• 3:46
  Tesla's business are higher for quarter 2 with anticipated
• 3:50
  improvements in Model 3 and cyber truck sales in the US and
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  a potential uptick in Chinese sounds.
• 3:58
  Now Tesla's stock performance has seen fluctuations, the 2.9%
• 4:02
  increase last week but trading below the 50 day moving average.
• 4:07
  Leaked emails from Elon Musk suggested push for the latest
• 4:10
  full self driving update in North America along with a one
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  month free trial offer for FSD. Now Tesla faced A notable
• 4:19
  decline in stock value on March 15th, reaching a new low for
• 4:23
  2024 stocks. Performance ranks in eighth
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  among auto manufacturers with relatively low composite and
• 4:31
  relative strength ratings. Now hedge fund manager Pearl
• 4:36
  Lekender has expressed A bleak outlook for Tesla, though,
• 4:40
  predicting the company could face bankruptcy and its stock
• 4:44
  could plummet to $14.00 for a pest.
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  To make it edit this out a very pessimistic view following
• 4:54
  Tesla's quarter one delivery report, which fell short of
• 4:57
  market expectations. And Pair is a bull.
• 5:00
  And Lekender attributes Tesla's challenges not to supply chain
• 5:04
  disruptions but to a demand problem, particularly with the
• 5:08
  Model 3 and Model Y vehicles. He does not anticipate any
• 5:12
  significant recovery for Tesla in the near term due to the
• 5:15
  aging model lineup and economic conditions.
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  Now, Tesla's first quarter delivery shortfall has led to a
• 5:21
  chorus of negative opinions, with analysts pointing to the
• 5:24
  harsh realities of scaling electric vehicle production.
• 5:27
  And despite Tesla's valuation, increased competition and market
• 5:30
  pressures are contributing to skepticism about the company's
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  future. Now Wedbush Securities analyst
• 5:37
  Dan Ives described Tesla's first quarter performance as a
• 5:41
  disaster, calling it a crucial moment for the company to
• 5:45
  recover or face potential long term challenges.
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  But amongst the criticism, Tesla continues to receive support,
• 5:53
  notably from Kathy Woods Arc Invest, which purchased Tesla
• 5:57
  stock ahead of the delivery report.
• 5:59
  Some analysts remain optimistic about Tesla's long term
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  prospects, citing potential catalysts like the promotion of
• 6:06
  the FSD feature and also the free trial of full self driving.
• 6:11
  The RBC Capital Markets analyst Tom Nerian highlighted Tesla's
• 6:16
  energy storage and autonomy as key factors in this position.
• 6:19
  Rating edit this out in his positive rating on the company's
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  stock. Despite the first quarter
• 6:24
  setbacks, there remains a belief in Tesla's potential to leverage
• 6:28
  this technology for future growth.
• 6:31
  Now, Tesla's recent price adjustments and promotional
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  offers show that it's going to work to stimulate sales amidst A
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  challenging period marked by lower than expected delivery
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  figures and a downward revision in earnings forecasts.
• 6:46
  The company's stock has experienced volatility with its
• 6:49
  future prospects contingent on its ability to navigate the
• 6:52
  competitive electric veal market and capitalize on its
• 6:56
  technological innovations. Hey, thank you so much for
• 7:00
  listening today. I really do appreciate your
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  support. If you could take a second and
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  other and I'll see you tomorrow.