The Bottom Line:
- Supply Constraints Affecting Deliveries
- Impact of Price Cuts on Volumes
- Trends in China Market Performance
- Estimates and Expectations for Q1 Deliveries
- Political Risks and EV Subsidies Outlook
Supply Chain Challenges Impacting Vehicle Deliveries
Factors Impacting Tesla’s Vehicle Deliveries
Look, thank you for having me on. We went through multiple geographies during the quarter, trying to discern how bad demand was, how good demand was, and clearly things aren’t perfect for Tesla. There was some weakness in China in March, but much of the potential weakness in deliveries this quarter has to do with supply constraints.
Price Strategy and Market Dynamics
Interesting question. They cut prices a lot last year, and clearly, it helped volumes. What’s interesting is that we put in our note today is that the price cuts haven’t been there so far this quarter, maybe a little bit here, in China, and in South Korea. Overwhelmingly, the tone has shifted dramatically in price cuts this quarter in the U.S., they actually increased prices four times, with another one due on April 1st.
Regional Performance and Competition Analysis
It’s a great question. In China, if you combine January and February, because there are some changes in the timing of the New Year, we’re actually up year over year. Where we think the weakness was probably in March, we had three weeks of reports. China’s not great, but they operate in multiple geographies, and there have been some pockets of goodness, whether it’s European numbers that are good for the first two numbers, U.S. is probably not that bad.
Price Reductions Influence on Sales Volumes
Impact of Price Reductions on Sales Performance
Interesting question. They cut prices a lot last year, and clearly, it helped volumes. What’s interesting is that we put in our note today is that the price cuts haven’t been there so far this quarter, maybe a little bit here, in China, and in South Korea. Overwhelmingly, the tone has shifted dramatically in price cuts this quarter in the U.S., they actually increased prices four times, with another one due on April 1st.
Regional Sales Analysis and Competitive Landscape
It’s a great question. In China, if you combine January and February, because there are some changes in the timing of the New Year, we’re actually up year over year. Where we think the weakness was probably in March, we had three weeks of reports. China’s not great, but they operate in multiple geographies, and there have been some pockets of goodness, whether it’s European numbers that are good for the first two numbers, U.S. is probably not that bad.
Estimating Q1 Deliveries and Market Expectations
For Q1 deliveries, you lowered to 420K, right? Yes. You think the street has gotten conservative enough that next week might actually be all right? Yeah, look, it’s hard to discern exactly where the whisper is, but probably in the low, low 400 range, below in the 420, and you know, we think that’s the over/under.
Insights into Performance Trends in the Chinese Market
Analysis of Current Market Dynamics
Look, thank you for having me on. We went through multiple geographies during the quarter, trying to discern how bad demand was, how good demand was, and clearly things aren’t perfect for Tesla. There was some weakness in China in March, but much of the potential weakness in deliveries this quarter has to do with supply constraints.
Price Strategy Evaluation and Market Trends
Interesting question. They cut prices a lot last year, and clearly, it helped volumes. What’s interesting is that we put in our note today is that the price cuts haven’t been there so far this quarter, maybe a little bit here, in China, and in South Korea. Overwhelmingly, the tone has shifted dramatically in price cuts this quarter in the U.S., they actually increased prices four times, with another one due on April 1st.
Insights into Regional Performance and Competitive Landscape
It’s a great question. In China, if you combine January and February, because there are some changes in the timing of the New Year, we’re actually up year over year. Where we think the weakness was probably in March, we had three weeks of reports. China’s not great, but they operate in multiple geographies, and there have been some pockets of goodness, whether it’s European numbers that are good for the first two numbers, U.S. is probably not that bad.
Anticipated Q1 Delivery Figures and Projections
Estimating Q1 Delivery Figures and Projections
For Q1 deliveries, you lowered to 420K, right? Yes. You think the street has gotten conservative enough that next week might actually be all right? Yeah, look, it’s hard to discern exactly where the whisper is, but probably in the low, low 400 range, below in the 420, and you know, we think that’s the over/under.
Analysis of China Estimates and Market Trends
It’s a great question. In China, if you combine January and February, because there are some changes in the timing of the New Year, we’re actually up year over year. Where we think the weakness was probably in March, we had three weeks of reports. China’s not great, but they operate in multiple geographies, and there have been some pockets of goodness, whether it’s European numbers that are good for the first two numbers, U.S. is probably not that bad.
Insights into Supply Constraints Impacting Deliveries
Look, thank you for having me on. We went through multiple geographies during the quarter, trying to discern how bad demand was, how good demand was, and clearly things aren’t perfect for Tesla. There was some weakness in China in March, but much of the potential weakness in deliveries this quarter has to do with supply constraints.
Evaluation of Political Barriers and EV Incentives
Analysis of Political Hurdles and EV Support Programs
Those EV subsidies have been beneficial for Tesla. The majority of people purchasing a Tesla are currently benefiting from a $7,500 tax credit. However, there is some uncertainty regarding the future of these subsidies in case of a change in administration. Despite this risk, the shift towards electric vehicles is inevitable over time.
