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The latest round of price cuts on electric vehicles won't affect demand for Tesla Motors (TSLA...

The latest round of price cuts on electric vehicles won't affect demand for Tesla Motors (TSLA +0.9%), according to industry watchers. They note that the Model S deserves a premium after blowing away the competition in road tests from hardened reviewers and it's vying for sales from BMW and Mercedes owners more than buyers looking at Volts and Leafs.
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Comments (39)
  • Esekla
    , contributor
    Comments (3677) | Send Message
     
    Agreed, but that doesn't make the stock a good investment at current prices. It's very easy to wind up buying the right company at the wrong time, leaving yourself underwater for years:

     

    http://seekingalpha.co...
    12 Jul 2013, 10:41 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Yes, I've watched you claim that for the last several weeks as the stock has continued to climb. You must be completely dumbfounded by now, but I'm sure one day you'll be right. In the meantime, step back and watch the growth of the right company at the right time make a lot of its supporters wealthier, while also making the world a better place for your children, and their children.
    12 Jul 2013, 11:10 AM Reply Like
  • Esekla
    , contributor
    Comments (3677) | Send Message
     
    If your investment horizon is measured in weeks, then you should definitely disregard what I'm saying.

     

    As for making the world a better place, it's all relative and Tesla is a good stop-gap. They are certainly better than the oil companies and incumbent auto makers, but don't forget that Tesla customers have the luxury of only looking at the clean end of their supply chain.

     

    In the longer term view implied by the stock price, experience indicates that having governments pick winners is seldom the best way to go about things. As long as Tesla doesn't turn around and join the incumbents to squelch the next round of innovation, like the Dearman engine, I'll be satisfied, regardless of what happens with the stock price.

     

    http://smrt.io/13gDGr5
    12 Jul 2013, 11:39 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Cherry picking to make a point is a weak strategy in a debate as anyone with a modicum of intelligence and imagination will be able to see the bigger picture.

     

    So, in a matter of weeks TSLA will implode? Is that what your suggesting with your comment; "If your investment horizon is measured in weeks, then you should definitely disregard what I'm saying."

     

    Humor me and tell me how many weeks? 2? 4? 10? 1043? Because I'll remind you, you've already been at this 'advice?' for several weeks. How many more weeks do you require to be right?
    12 Jul 2013, 01:55 PM Reply Like
  • Esekla
    , contributor
    Comments (3677) | Send Message
     
    Right about what? I've made none of the claims you just ascribed to me. My only claim is that the stock price has quite a bit success already baked in, and that there are far better investment options out there. If you want some, see the last two here:

     

    http://seekingalpha.co...

     

    Your counter seems to be that I am wrong because the stock has gone up for a period of weeks. Others can assess the validity of that reasoning on their own.
    12 Jul 2013, 02:32 PM Reply Like
  • J 457
    , contributor
    Comments (952) | Send Message
     
    TSLA will be below $50 next year at this time. The momentum is fueled by nothing more than cheap borrowed money that decided to make this stock yet another Wall St Hedge Fund darling to pump. NFLX, AMZN, CMG...they almost always end up like GMCR and eventually experience wild cycles and price swings- and TSLA is no different. Do me a favor and check back with me later to tell me how right I was. The "ones" that call the shots are already selling to the retail morons and will profit on both ends of the trades.
    12 Jul 2013, 05:09 PM Reply Like
  • Julian Cox
    , contributor
    Comments (1283) | Send Message
     
    J 457, that has to take the prize for the most moronic comment of all time considering TSLA has just gained entry to the NASDAQ QQQ and is currently getting bought up by funds that used to have their money in Oracle.

     

    http://bit.ly/PkSVUO

     

    Here is the burgeoning list of institutional investors (note 68% institutional at the time of writing). Note also circa 25% is owned by Musk and he is not the only insider with a substantial holding - leaving what exactly for retail? Not a whole lot.
    12 Jul 2013, 05:43 PM Reply Like
  • joenjensen
    , contributor
    Comments (708) | Send Message
     
    Esekla, I have been reading that kind of stuff for months now, ever since tsla was maybe $35.00 a share, it's $129.60 up again today and there is no stopping it in sight. What does that mean?
    To me that means the car and company is worth every penny that the stock generates, don't forget many of these stock holders also own the Model S as well as the stock, and for the very first time there is a very strong feeling that the company cares about them by tell owners we will pay you back every penny you paid for the car even after you have used and driven the car for three years regardless of you reasons for returning it.

     

    What car company besides Tesla does that? Plus you can plug into a supercharger every day and get FREE mileage, what car company gives a new car owner free gas for as long as you own it? Answer is: No one!

     

    That's why I believe this stock will continue to go up, and the Model S and X (when it comes out) will continue to get more and more popular.
    12 Jul 2013, 09:14 PM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Right, and all the while you've claimed it's not a good stock to invest in, it's continued to rise. And rather vigorously steady I might add. Surely you're not suggesting that a stock that continues to rise on company and market milestones (making people money) is a poor investment?

     

    So again I ask, how many more weeks until TSLA realizes your prediction of a 'poor investment choice'? Because it's easy to say it's overvalued, it's got perfection and success baked into it, it's this it's that, but it's quite another to put some concrete numbers to it and offer investing advice with value, especially while the stock continues to rise, and the company continues to meet milestones, all the while you continue to expound on how it's a poor investment. How much has it risen since your first claim? 10%? 20%?

     

    Give us a solid time frame at which point TSLA becomes a poor investment choice. Monday morning? Is that when it stops making its shareholders money? The following week? Heck, I'd even accept an entire year's range in case you're new to the game - but I see you're not. Anything less and your *guess* about TSLA's future (and thus your investment advice) isn't any better than the homeless guy sitting outside the 7/11.
    13 Jul 2013, 02:46 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    You get bonus points, Mr. J457, for at least putting a time frame on it and a number to it, unlike others. Duly noted, screen shot taken, see you next year.
    13 Jul 2013, 02:53 AM Reply Like
  • EVfan12
    , contributor
    Comments (293) | Send Message
     
    With Tesla's coming expansion into Europe, there is NO WAY J457's predictions will come true, AT LEAST not for the next COUPLE of years!!! Tesla will probably do far better in Europe, than in the states, due to their higher gas prices, 'greener' mindsets, etc. At worst, the stock price will slighly increase, or stay the same.
    See: http://bit.ly/14qGNJN
    14 Jul 2013, 06:45 AM Reply Like
  • J 457
    , contributor
    Comments (952) | Send Message
     
    Yea, Julian, real moronic with the 15% plunge today alone. Haven't you been thru this before with other high flyers?? TSLA no different.....
    16 Jul 2013, 06:46 PM Reply Like
  • J 457
    , contributor
    Comments (952) | Send Message
     
    PS Julian, like I said July 12 when TSLA was at $130, check back with me next year at this time and you'll see that $50. Maybe long before then at this rate...Will you tell me I was right then or let your ego get in the way...
    16 Jul 2013, 06:48 PM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    So, how's it looking now, J457? Back up that 15%, plus, plus, plus hitting a new all-time high. Always be careful when you crow.
    29 Jul 2013, 01:37 PM Reply Like
  • The Mighty Wart
    , contributor
    Comments (119) | Send Message
     
    Very arrogant analysis. Obviously in the US you don’t get Top Gear otherwise the “industry watchers” will have a different opinion based on the episode they tried one of them.
    12 Jul 2013, 10:45 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Yes, actually we do *get* Top Gear in the US. The difference is *we* know the show is scripted. *We* know the Roadster didn't actually run out of charge. *We* also know that the Model S (which this article is about) is a phenomenal car and so does everyone else...except you. Thanks for playing.
    12 Jul 2013, 10:59 AM Reply Like
  • TikiManProd
    , contributor
    Comments (132) | Send Message
     
    With petrol in the UK at nearly $15.00 USD a gal, I suspect we will start seeing far more there Model S's than Jaguar's eventually.

     

    Regardless, the 'Top Gear' folks will still do shows about unattainable ICE exotics for the 99%’ers, whom can only dream of owning a 10 MPG exotic in the UK.
    12 Jul 2013, 11:20 AM Reply Like
  • gen3
    , contributor
    Comments (296) | Send Message
     
    Obviously you are the usual fellow Brit who makes me cringe !!!!

     

    Watch this !!

     

    http://bit.ly/17VXOgk

     

    From a country where the national public broadcaster actually
    has some credibility.
    12 Jul 2013, 11:37 AM Reply Like
  • J 457
    , contributor
    Comments (952) | Send Message
     
    I talked to a guy last week who's Model S almost ran out of juice on a road trip. He had to search for a charging station and battery was almost exhausted before he finally found one. But I agree it's a classic beautiful car, especially made for the ladies. Like a Jaguar or Cadillac.
    12 Jul 2013, 05:12 PM Reply Like
  • Julian Cox
    , contributor
    Comments (1283) | Send Message
     
    car dealer much.

     

    Followed.
    12 Jul 2013, 05:44 PM Reply Like
  • Esekla
    , contributor
    Comments (3677) | Send Message
     
    @J457 - The Model S is supposed to tell you where charging stations are, so that's surprising. Anyway, it's early days and I don't think current experiences have much to do with invest-ability here any way. It really comes down to whether or not Tesla can execute on the Gen III without revision.

     

    That said, I don't really see why people are raving over this video. It shows a guy driving 300 km (186 miles) and almost running the battery dead, so that he had to finish the drive on reduced power. I further note:

     

    1) he wears his jacket and other clothing exactly the same inside the car as out. No heat?

     

    2) he acts like he's loading the car up, but it's all light weight stuff, bike, skis, guitars, etc. The heaviest thing is some Ikea-style furniture (particle board?) and luggage with unspecified contents. If he'd simply had 3 passengers instead he would have had maybe twice the load and almost certainly wouldn't have made it.

     

    Most people don't use a Model S this way anyway. Obviously the current owners are mostly thrilled with it, as well they should be. I just don't get why someone would post this video with the attitude that there's no room for improvement.
    12 Jul 2013, 06:00 PM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    How ironic! I talked to this guy last week who's ICE (fill in make and model of choice) almost ran out of gas. There wasn't a gas station for miles. He'd been driving around the countryside looking at all the pretty summer meadows and forgot to fill up at the last gas station. I followed him just in case he ran out of gas and finally we found a gas station. He too had a beautiful car, well, except for the fumes emanating from the exhaust pipe and the oil dripping from his engine.
    13 Jul 2013, 03:00 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Clearly you have no idea how heavy Ikea furniture is.
    13 Jul 2013, 03:02 AM Reply Like
  • gen3
    , contributor
    Comments (296) | Send Message
     
    His mistake is the PHRASE you have used CHARGING STATION
    most good places to charge ARE NOT charging stations right now.
    Why did he not plan better ? Any hotel or restaurant with a commercial kitchen has the right juice you don't need a STATION just a lead and adaptors. What was the roadtrip ? Does he know to use RV Parks ? Does he also know there is an online community of TESLA owners who offer their homes as charge points to fellow TESLA owners ?
    Please share this with him.
    13 Jul 2013, 08:05 AM Reply Like
  • Joe E Coyotee
    , contributor
    Comments (254) | Send Message
     
    If the situation was reversed where Tesla was price cutting in order to compete with rivals that would be one thing but its the reverse Tesla's rivals are cutting there prices in order to try and make more sales.
    Fact still remains the Auto manufactures to this day do not want to produce a compelling EV to be successful, they are only in it for compliance requirements.
    12 Jul 2013, 10:55 AM Reply Like
  • EVfan12
    , contributor
    Comments (293) | Send Message
     
    Tesla should do well competing against the BMW'S and Mercedes' of this world, and don't for one second discourage that, but long term - if they really want to be HUGELY, UNBELIEVABLY successful, they need to start competing with the Nissan Leafs, and others in that price range. Most readers here know that, and so does Tesla, but Tesla needs to stay strongly focused on making that goal happen as soon as possible. If I were Tesla, I would have rather used the time and money spent (and to be spent) on the Model X, on a pre-Gen III model aimed at taking more market share from the Leaf buying customers. Gen III could then come out after that, when the battery tech has improved enough.

     

    Just think about the PHENOMENAL sales growth that can be experienced if Tesla can bring out an all electric model that is even 20% cheaper than the Leaf and has only 20% more driving range!!! And that could just be the start!!! I think they have done a lot of what they had at first set out to accomplish by seller electric to high end buyers - they need to fastrack the lower income market NOW as fast as possible, without delay!!!
    12 Jul 2013, 11:28 AM Reply Like
  • John Bingham
    , contributor
    Comments (1207) | Send Message
     
    EVfan12,

     

    We're all waiting for the Gen 3 to be launched but Tesla really does know what it's doing.

     

    The Model X is likely to be a very high seller and should realize extremely good margins. Initial manufacturing will be relatively inexpensive for Tesla because it shares its main "skateboard" platform, battery pack and drive train with the Model S. The Gen 3 platform will need a new assembly line as it is a different shape and size from the Model S, so the money realized from the Model S and X sales can be used to develop this platform and build the new lines.

     

    The smaller Gen 3 is also dependent on the next generation of cells from Panasonic, currently available as general purpose cells but not yet available as full automotive grade to Tesla's specifications.

     

    Tesla will ramp up production and introduce new models as and when they are ready. It needs patience and very careful planning to take a manufacturing company from initial concept to profitability (very many have failed), especially if your stated intent is to change a very large and heavily entrenched industry like Big Auto!

     

    What we see now was planned years ago, and Tesla's roadmap is proving to be a highly successful model. We don't need to change it!
    12 Jul 2013, 12:51 PM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Adding to Mr. Bingham's post, the Model X will be introducing the next level of EV technology like AWD. That next stage of tech carries significant importance and rightfully needs to come before GENIII.
    12 Jul 2013, 02:00 PM Reply Like
  • Amit Ghate
    , contributor
    Comments (212) | Send Message
     
    I don't think this is possible nor plays to TSLA's strengths. To build small cars cheaply is more manufacturing-driven than EV engineering driven and there's no (at least not yet) evidence that TSLA has any advantages in the production side of things. Indeed I'd argue that they're still way behind on the learning curve in this aspect relative to big ICE manufacturers, and that gaining the knowledge/expertise won't be as easy as all the longs assume...
    12 Jul 2013, 08:50 PM Reply Like
  • Esekla
    , contributor
    Comments (3677) | Send Message
     
    Building and manufacturing an EV is rather a different beast anyway, so while this argument has some relevancy, I think it cuts both ways. I've been saying for a long time that Tesla is not in competition with traditional auto makers, that doesn't mean it will have no competition.
    12 Jul 2013, 09:53 PM Reply Like
  • EVfan12
    , contributor
    Comments (293) | Send Message
     
    I just don't see how bringing out an electric AWD will help them much. Not that the market can't exist, but won't electric AWD's be more energy intensive anyway? (when in AWD mode). To put it a different way, I have read the proposed specs on the Gen III and I don't see why they can't instead build it with a lower range, cheaper price, BUT better range and price than the Leaf. This can be done on the same scale as the Model S is being done now, and then increase production over time (as they plan to do with the Gen III anyway - large scale mass production doesn't happen overnight, even with ICE's). They will then eventually get to the stage of ICE manufaturers sooner, or later. The plus to all of this is that they can end up catering to the higher AND lower ends of the market at the end of the day - even if the lower end takes much longer and is partially financed by sales from the higher end, and even if the profit margins per vehicle are lower and made up later with higher volumes. If Tesla has achieved as much as they have so far - with superior technology - then I don't see why this is not possible.

     

    Surely it can't be that difficult to compete with the Leaf.
    My worry is, the longer they put this off for, the harder it will be to compete with the likes of a Leaf 2, or Leaf 3 in future.
    14 Jul 2013, 07:27 AM Reply Like
  • gen3
    , contributor
    Comments (296) | Send Message
     
    And for everyone else who has not seen this brilliant Norwegian review of the MODEL S

     

    http://bit.ly/17VXOgk

     

    click 720p / sorry there is an audio channel fault
    but its brilliant beyond that.
    12 Jul 2013, 11:38 AM Reply Like
  • paulvard
    , contributor
    Comments (124) | Send Message
     
    Amazing!
    12 Jul 2013, 03:19 PM Reply Like
  • Julian Cox
    , contributor
    Comments (1283) | Send Message
     
    It is a huge testament to Elon and the guys that it is the $40K Volt that is suffering downward price pressure and the $90K Tesla that is under pressure to step up production.
    12 Jul 2013, 12:36 PM Reply Like
  • jerzeyjohn
    , contributor
    Comments (2) | Send Message
     
    It is the supreme performance- top of the line specs on this car that has every one talking (and investing) in this company... not another "Leaf."
    12 Jul 2013, 02:26 PM Reply Like
  • hughesrd
    , contributor
    Comments (185) | Send Message
     
    I agree with everyone who believes the stock is overpriced, given conventional analysis. (My average purchase is at $29 so I'm not too worried about losing.) If it falls to $80 I would buy again, but barring catastrophe to the economy or the company, that may never happen.

     

    For many years I've thought the company might be the next Ford. Will the third generation be labelled the Model T?
    12 Jul 2013, 04:37 PM Reply Like
  • $TSLA fan
    , contributor
    Comments (8) | Send Message
     
    $TSLA any idea what the earning will be? Good or bad and when?
    13 Jul 2013, 06:37 PM Reply Like
  • EVfan12
    , contributor
    Comments (293) | Send Message
     
    I just don't see how bringing out an electric AWD will help them much. Not that the market can't exist, but won't electric AWD's be more energy intensive anyway? (when in AWD mode). To put it a different way, I have read the proposed specs on the Gen III and I don't see why they can't instead build it with a lower range, cheaper price, BUT better range and price than the Leaf. This can be done on the same scale as the Model S is being done now, and then increase production over time (as they plan to do with the Gen III anyway - large scale mass production doesn't happen overnight, even with ICE's). They will then eventually get to the stage of ICE manufaturers sooner, or later. The plus to all of this is that they can end up catering to the higher AND lower ends of the market at the end of the day - even if the lower end takes much longer and is partially financed by sales from the higher end, and even if the profit margins per vehicle are lower and made up later with higher volumes. If Tesla has achieved as much as they have so far - with superior technology - then I don't see why this is not possible.

     

    Surely it can't be that difficult to compete with the Leaf.
    My worry is, the longer they put this off for, the harder it will be to compete with the likes of a Leaf 2, or Leaf 3 in future

     

    Why limit yourself only to the luxury EV market?
    Why become another Jaguar, or Mercedes, when you can become a Toyota?
    Granted it won't be easy, but I definitely don't think it's impossible.
    (I had initially thought that this was the whole plan with the Gen III anyway).
    14 Jul 2013, 07:30 AM Reply Like
  • AlexiaEP
    , contributor
    Comments (1076) | Send Message
     
    Mr. EVfan12...Tesla is not limiting themselves to the luxury EV market. There is a plan in place and in play. Be patient. AWD is exceedingly important to the market. Wait and see.
    29 Jul 2013, 01:39 PM Reply Like
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