Tesla stock drops more than 11% over lack of new models/chip shortage

[Eric]

Ouch, bad day for Tesla. Not that we didn't see it coming eventually with all the competition though.

Tesla drops more than 11% over lack of new models

With the lack of production of new models and increasing competition from other EV manufacturers, Tesla stock is taking a hit as their shares dropped 11% on Thursday. CEO Elon Musk broke the news to shareholders on a 2021 fourth-quarter earnings call after trading on Wednesday, noting that...

tesla180.com

 

[SuperMatt]

The bubble on that stock is ridiculously huge. If you really think about the market cap, they’d have to knock almost every other auto manufacturer out of business to reach that valuation.

 

[tobefirst]

Yeah, I'd say that they are going to have to turn their models over faster, but they haven't turned them over at all. I admire the updates that their cars are given OTA, so you don't have to get a 2022 model in order to get something that your 2020 didn't have. However, I imagine that Model S sales would be better if it looked substantially different today than it did almost a decade ago. It's tough to say, "Let's do that" during the supply chain shortage, but I've seen no news of significant updates even before then. Maybe I missed something, however.

 

[ronntaylor]

I'm waiting for the crash. Long overdue.

 

[quagmire]

This is why I hate the stock market. They can barely make the vehicles they produce now due to the shortage, they still have 3 vehicles in the development cycle, and yet wall street expects Tesla to put resources they currently don't have into a "Model 2". Don't get me wrong, I do believe Tesla is hugely overvalued right now. But their earnings report was far more positive than negative, and yet stock goes down. Guess that is to be expected when a speculative stock receives negative speculation news......

 

[quagmire]

Yeah, I'd say that they are going to have to turn their models over faster, but they haven't turned them over at all. I admire the updates that their cars are given OTA, so you don't have to get a 2022 model in order to get something that your 2020 didn't have. However, I imagine that Model S sales would be better if it looked substantially different today than it did almost a decade ago. It's tough to say, "Let's do that" during the supply chain shortage, but I've seen no news of significant updates even before then. Maybe I missed something, however.

This 11% drop is all due to Musk saying the long rumored $25K Tesla is still not in development yet.

But yes there have been updates to their current models. They constantly are. Some are minor while others are massive. Just they are underneath the same cosmetic design. The Model Y is about to go underneath a massive update and it is barely 2 years old. Last year they transitioned the rear sub-assembly from being welded together to a single mega cast. They are now preparing to do the same with the front sub-assembly and move to a battery pack that is structural in nature with the 4680 battery cell vs the current 2170 cell. The latest S while looking similar also received massive redesign underneath the skin. Tesla doesn't stop updating their current models hardware. They don't even wait to make the change at the Model Year change like traditional automakers. A January 2021 Model 3 is not the same as a 2021 Model 3 made in October. It will be the same case soon with the Model Y. A 2022 Model Y delivered today won't be the same as a 2022 Model Y delivered in June as Tesla changes over to the new platform and battery.

 

[tobefirst]

This 11% drop is all due to Musk saying the long rumored $25K Tesla is still not in development yet.

But yes there have been updates to their current models. They constantly are. Some are minor while others are massive. Just they are underneath the same cosmetic design. The Model Y is about to go underneath a massive update and it is barely 2 years old. Last year they transitioned the rear sub-assembly from being welded together to a single mega cast. They are now preparing to do the same with the front sub-assembly and move to a battery pack that is structural in nature with the 4680 battery cell vs the current 2170 cell. The latest S while looking similar also received massive redesign underneath the skin. Tesla doesn't stop updating their current models hardware. They don't even wait to make the change at the Model Year change like traditional automakers. A January 2021 Model 3 is not the same as a 2021 Model 3 made in October. It will be the same case soon with the Model Y. A 2022 Model Y delivered today won't be the same as a 2022 Model Y delivered in June as Tesla changes over to the new platform and battery.

Thanks. You make great points about them updating physical things without waiting for a model year change. But, as we know with iPhones (and with automobiles, too), people care a lot about a change to the cosmetic look of the products they buy.

 

[quagmire]

Thanks. You make great points about them updating physical things without waiting for a model year change. But, as we know with iPhones (and with automobiles, too), people care a lot about a change to the cosmetic look of the products they buy.

Agreed. I don’t think Tesla has reached Porsche 911 stage to keep the overall design language the same forever. I think the next major engineering change to the S needs to have a design change too.

Tesla is in a stage where they still need to be wise with their resources. They are not like GM or Ford yet where they can have multiple development paths going at once. They still need to flesh out their lineup, but need to keep current lineup fresh. The balancing act is tough or Musk/Tesla will find themselves where Ford was back in the 1910’s that let GM overtake them because the Model T was growing stale, etc. So far not many are complaining about the S design language not changing for the last decade. All focus
has been the new interior and the Plaid.

 

[User.168]

.

 

[quagmire]

The cars have also had interior makeovers.

Yeah. The 3/Y went from the glossy piano black center console to a matte design and the 3 gained door trim that extends the trim on the dash. The S/X in the latest change saw a total redesign of the interior.

 

[Eric]

This 11% drop is all due to Musk saying the long rumored $25K Tesla is still not in development yet.

But yes there have been updates to their current models. They constantly are. Some are minor while others are massive. Just they are underneath the same cosmetic design. The Model Y is about to go underneath a massive update and it is barely 2 years old. Last year they transitioned the rear sub-assembly from being welded together to a single mega cast. They are now preparing to do the same with the front sub-assembly and move to a battery pack that is structural in nature with the 4680 battery cell vs the current 2170 cell. The latest S while looking similar also received massive redesign underneath the skin. Tesla doesn't stop updating their current models hardware. They don't even wait to make the change at the Model Year change like traditional automakers. A January 2021 Model 3 is not the same as a 2021 Model 3 made in October. It will be the same case soon with the Model Y. A 2022 Model Y delivered today won't be the same as a 2022 Model Y delivered in June as Tesla changes over to the new platform and battery.

I think they could use better control over their messaging, just leaving it in the hands of Musk is costly because he puts little thought into what and how he tweets, yet everyone hangs on his every word trying to read his tea leaves. I get that in the end the company news won't change but how its conveyed matters.

 

[quagmire]

I think they could use better control over their messaging, just leaving it in the hands of Musk is costly because he puts little thought into what and how he tweets, yet everyone hangs on his every work trying to read his tea leaves. I get that in the end the company news won't change but how its conveyed matters.

Double edged sword in that the reason Tesla is probably valued so damn high is due to his word( hence his trouble with the SEC.......) so naturally when anything that could be contrived as a negative comes out of his mouth or twitter, things tend to crash. Musk also proves why cryptocurrencies suck. Just look at the rise and crash of BitCoin just on Musk saying, " Bitcoin is great!" or " Bitcoin sucks! It pollutes the Earth!".

 

[SuperMatt]

Remember when Musk tweeted that he was going to sell 10% of his shares in Tesla and the stock tanked?

His brother sold over $100 million worth of shares the day before. Now the family is being investigated for insider trading.

Also, the tweet in which Musk said he was going to sell to prove he pays income tax was a lie. He had stock options that were expiring. He was actually doing it to REDUCE his taxes.

The investigation reportedly centers on Kimbal Musk's sale of 88,500 Tesla shares in November, for which he received nearly $109 million.

The shares represented about 15% of his stake in Tesla at the time. Unlike his brother Elon who has rarely sold stock, Kimbal Musk has regularly sold shares in the company.

On Saturday, November 6 — the day after Kimbal Musk sold his shares — Elon Musk posted a poll on Twitter asking whether he should sell 10% of his shares. Musk claimed in the tweet that the sale would answer criticism that he paid little or no federal income tax, despite being the richest person on the planet. However the major factor in the sale was not the Twitter poll but the fact that he had to exercise stock options that were due to expire this August, a move that would create significant taxable income.

This guy really is a piece of trash.

Elon Musk and brother reportedly face insider trading probe

Tesla CEO Elon Musk and his brother are under investigation by the Securities and Exchange Commission for possibly violating insider trading rules, according to media reports.

www.cnn.com