12/11/2023 0 Comments Captur 2020 intenseThese pricing experimentations have resulted in significant variations in gross profit margins, but Tesla has remained overall highly profitable. This has worked well for Tesla for the most part, except for concerns arising with China in Q1 2023, as discussed in my previous article, linked above. Tesla has experimented with price elasticity, increasing prices to dampen demand at times of shortfalls in production, and decreasing prices to boost demand at times of excess production. Need to continuously lower unit cost of production of Tesla vehicles. As important as gross profit margins are, unit cost of production of vehicles is the more important statistic to review Tesla's progress and gauge its future. I find a worrying trend in unit cost of production of Tesla vehicles. In this article I include analyses of Rest of World ("RoW") and total performance. But China is just one piece of the puzzle. China is the one market we can get sufficient information to make a really close assessment of sales revenues in a particular market, together with vehicle deliveries in that market, enabling tracking of average selling price per vehicle across time. I say surprisingly because greater transparency is not what we intuitively expect from an autocratic state. My analysis was aided, surprisingly, by availability of greater detail on vehicle deliveries in China than other parts of the world. 6, 2023, and the effects these had on demand for Tesla vehicles. Among the reasons for this were the big price cuts in China effective Jan. In my June 16 article, "Tesla's Concerning Q1: Forensic Analysis Of Price Elasticity, Downgrade To Hold," I concentrated my analysis on Tesla, Inc.'s ( NASDAQ: TSLA) operations in China. Cohen/iStock Editorial via Getty Images Investment Thesis
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