Tesla Share Price Plummets After Musk's NAIAS 2015 Visit
Tesla shareholders felt lighter Wednesday after the automaker’s stock price fell from just over $200/share to $186.09/share after CEO Elon Musk’s announcement at the 2015 Automotive News World Congress in Detroit — held during the 2015 Detroit Auto Show — that his company wouldn’t be profitable until the start of the 2020s.
Business Insider adds that another bombshell dropped at the start of his presentation likely helped to take the wind out of the sails: sales of the automaker’s Model S in China were down in Q4 2014. Musk put the blame on perception among Chinese consumers regarding the charging infrastructure for Tesla’s sole model, explaining that not only had the issue been handled, but that the Supercharger network was expanding; the rate of said expansion, however, is slower than that of Europe or the United States.
Further into the presentation, Musk proclaimed that Tesla would sell “a few million” vehicles by 2025 by going for volume over being a niche luxury player, likely built on the back of the upcoming Model 3. Meanwhile, the Model X due sometime this year is already sold out for the entire year despite the company’s best efforts to manage demand, such as steering would-be X owners into the driver’s seat of the S.
Finally, Musk urged the majors in the audience to continue their investments into electrification, stating that they all need to do more to change the public’s perceptions on EVs and hybrids.
Since the plunge, Tesla shares have recovered some of their lost value, closing $191.87/share Thursday afternoon.
If the mainstream Model 3 comes out during a period of low gasoline prices, the justification math (look at the money you'll save) gets tough to present. Selling to mainstream customers isn't just about chargers, brand aspiration, and look at the money you'll, *ehem" save by spending $35,000, but it's about a dealer and service network. There is a lot of logistics and business needs to go mainstream over niche boutique brand, and I think people are under estimating these challenges. The way you treat a relatively small number of luxury customers simply won't scale in a mainstream operation. If they did scale and didn't hurt profitability, ever dealer service department would operate like Lexus, BMW, Porsche, etc. etc. etc.
The price has been bought down by day traders shorting his stock,probably the same day traders who sit on the PC all day buying and selling in nanoseconds to suit their whims or what ever some daytime TV financial guru tells them. Hence the slight dead cat bounce later in the day. For my money,Tesla is just another Columbia Electric . A toy for the rich and fatuous and eventually they will go the way of all such toys...into museums to be gawked at.
NEVER EXPLAIN...NEVER COMPLAIN. Did Elon learn NOTHING from Jim Cramer? THEY KNOW NOTHING!
Elon, you lying sack of s.....