Tesla Lowers Price In China: Bears Claim Demand Is Crashing
More noise from Tesla bears. Next to Peter Schiff, these people have been wrong for the longest time of anyone out there.
In this video I discuss what cuased the original price increases and why there is a reversal. We see three components factoring into this, something the bears are not taking into account.
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Tesla demand is tanking. People can't get spare parts for months. Expensive Electricity being restricted.
Lots of the profits come from questionable government green grants.
Love Elon Musk. But maybe he's overstretched himself a bit. Lets do a twitter poll and see what the bots think.
The Tesla dream has peaked. Short the stock.
Sign the petition against big tech, big pharma and big gov scammers www.ScamBuster.TV
Summary:
This video discusses Tesla's recent decision to lower prices in China, which has caused a stir among Tesla critics. The speaker addresses the misconceptions surrounding this move, explaining how it is a result of various factors like supply chain constraints, commodity prices, and production increases in Tesla's China factory. He emphasizes that the price reduction does not necessarily indicate weak demand but can be attributed to changes in these underlying factors. The speaker also touches on the potential impacts on Tesla's profit margins and considers the affordability aspect of Tesla vehicles in the Chinese market.
Detailed Article:
The video starts with the speaker addressing the recent announcement by Tesla regarding lowering prices in China, a move that has sparked excitement among Tesla bears. He delves into the underlying reasons behind this decision, pointing out that it stems from a culmination of factors affecting the automotive industry, including supply chain issues and soaring commodity prices.
The speaker highlights Tesla's ability to navigate these challenges better than most due to its tech-oriented approach, which allowed them to adapt to changing circumstances by reprogramming components to accommodate different chips. Despite this, Tesla still faced constraints during the pandemic-induced lockdowns in China, leading to price hikes as they struggled to keep up with demand and cope with supply shortages.
As the speaker dissects the situation, he explains how the recent drop in prices should not be misconstrued as a sign of weakening demand but rather a response to a changing landscape. He mentions insights from Elon Musk during a conference call, where Musk noted a deflation in commodity prices, although battery costs, particularly lithium, remained high. This clarification underscores the nuanced nature of the market dynamics influencing Tesla's pricing strategies.
Moreover, the speaker sheds light on Tesla's production increase in China, with reports suggesting a significant rise in vehicle output from the Chinese factory. He elaborates on the logic behind this surge, attributing it to the easing of supply chain constraints, the lowering of component costs, and the concept of economies of scale. By ramping up production, Tesla can leverage fixed costs more effectively, potentially leading to improved profitability despite the price reductions.
The discussion also touches on the affordability factor, acknowledging the economic headwinds in China and the importance of aligning pricing with consumer purchasing power. The speaker emphasizes the need to view Tesla's pricing adjustments in a broader context of market dynamics and economic conditions.
In conclusion, the speaker critiques the simplistic narrative that ties price fluctuations solely to demand, urging viewers to consider the multi-faceted reasons driving Tesla's pricing strategies. He hints at upcoming financial results as a clearer indicator of the impact of these decisions on Tesla's bottom line, offering a pragmatic perspective on the complexities of the automotive market.
Overall, the video provides a thorough analysis of Tesla's pricing adjustments in China, debunking misconceptions and offering a nuanced view of the factors influencing these strategic moves. It serves as an insightful exploration of the intersection between supply chain dynamics, production economics, and market forces shaping Tesla's pricing decisions in a challenging business environment.