evnow wrote:The investment thesis is actually very simple
- EVs are the future of personal transportation
- Tesla is the undisputed leader in EVs
What more do you need ?
I'm actually taken aback that this is all one needs to invest in a company. I honestly don't even know how to respond to it.
evnow wrote:Not withstanding the fact that 400k people reserved to get the $35k base Model 3 three years back, somehow shorts have convinced themselves that finally releasing the promised $35k base car after 3 years somehow shows there is no demand for Model 3 ! The short interest spiked after the SR release and of course the stock price went down. When there are people willing to sell the stock for below market price, why wouldn't it ?
I'll pick on this cause it's the easiest.
Tesla said 400k people reserved (at least). This was initially. Many of their sales since were not by reservation holders. They've sold around 220k 3s now and yet are now able to create cars as quickly as people want them, as evidenced by very short lead times across all models at this point. How many of those 400k cancelled their reservations? I'm guessing in the vicinity of 3/4.
The demand question, btw, is not really a debate. Everybody knows Tesla is having demand problems. You don't lower the cost of all your products by 15% if demand outstrips supply.
As for Tesla's most difficult days are behind them I beg to differ. Q1 report is going to be very ugly.