![]() Since the phase-out of the EV incentives, even EV sales, which had been booming until recently, have started to skid, just as Tesla is launching production at its factory in Shanghai. China is the largest EV market in the world, but there are hundreds of EV makers in China, including all global automakers, that are offering a slew of EV models.Īuto sales in China have hit the skids in mid-2018. Now Tesla’s strategy is to exhaust any pent-up demand globally. But that appears to have been an assumption that failed. It was long assumed that Tesla buyers, a special group of people, would buy regardless of incentives or no incentives. Tesla single-handedly made EVs cool and created the EV space but now everyone is moving into it on a massive scale, and it’s dog-eat-dog, something Tesla has not experienced before.įour, federal EV incentives for Tesla’s cars are being phased out. Three, the onslaught of EV competitors, manufactured properly by global automakers – from GM on one end to Porsche on the other – is now arriving. Without that pent-up demand of the early fans in the US, Tesla is screwed, amid voluminous complaints about quality problems and a shortage of parts to get collision damage or warranty problems fixed that cause regular buyers to hesitate. In January this year, Tesla started laying off part of its US delivery staff as deliveries were in free-fall. But when reality finally arrived, it was the expensive versions that were offered, and folks hoping to buy a sub-$40,000 version were strung out until this year.īy the end of last year, that pent-up demand in the US was largely exhausted. Tesla took deposits, and folks lined up to buy one for $35,000 or whatever. For years before the much-delayed mass production actually started, Tesla hyped the Model 3 endlessly, with teaser-prices that were low enough to move it into the realm of a mass-market car. Two, pent-up demand for the Model 3 is exhausted in the US. And Tesla does not appear to make any efforts at resuscitating them. Americans are now losing interest in these models. Tesla has not redesigned them, or even just reskinned them. They’re reaching the end of their life-cycle. One, the Model S and X are withering away. But what has caused this collapse in US demand? But demand has collapsed, and Tesla is now trying to offset this collapse in US demand by selling its cars elsewhere. There are plenty of new Tesla’s in the US. Why the heck this collapse in demand in the US? But now we’re seeing a revenue collapse in its most important market, the US. Total Revenues: -8% to $6.30 billion, from $6.82 billionįor a company whose entire over-inflated stock-price story is based on hype about its endless massive growth, a revenue decline is the end of that story.Norway: +13% to $253 million, from $224 million.Netherlands: +56% to $427 million, from $274 million.China: +64% to $669 million, from $409 million.United States: -39% to $3.13 billion, from $5.13 billion.The list below shows revenues in Q3, all products and services combined, by geographic region, compared to Q3 2018: The collapse in revenues in the US was only partially offset by revenue growth in its other geographic markets. When revenues plunge 39%, it’s a collapse. But the details in today’s 10-Q filing of how that plunge was composed – or rather where it occurred – made it a lot more catastrophic: Revenues in the US, its largest market, collapsed. When an automaker’s automotive revenues plunge 12% year-over-year, that’s catastrophic enough. Total deliveries of all models combined rose 16% year-over-year to 97,186 vehicles, but now heavily skewed toward the less expensive models, with the Model S and X looking at oblivion. This plunge in dollar-revenues from the vehicles it sells was caused by a 37% or 10,227-unit plunge in deliveries of its high-dollar Model S and Model X, to just 17,483 units and a 42% or 23,638-units surge of its lower-dollar but still expensive Model 3. “Services and other” revenues jumped by 68% to $548 million.Energy and storage revenues ticked up less than 1% to $402 million.Automotive revenues plunged 12% to $5.4 billion.Total revenues in the third quarter declined by 7.6% from Q3 last year, to $6.3 billion ( earnings report), the first year-over-year decline since the Financial Crisis, composed of these elements: The 10-Q provides a pile of additional detail that Tesla is not required to disclose in its promo-laden earnings report that was primarily designed to downplay its first year-over-year revenue decline since the Financial Crisis.īut that revenue decline is a lot more nerve-wracking than what it looks like on the surface. This morning, Tesla filed its Form 10-Q quarterly earnings report with the SEC, a moment when no one was supposed to pay attention after the surprise quarterly profit that had caused such a hullabaloo last week. ![]()
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