Tesla just . . PIVOTED. And one of the two interpretations is ludicrous.
I’m not kidding. It’s massive and was kind of in full view. But most missed it.
Multiple pointers in the last 6 months have made it clear that Tesla might be pivoting and one that proved it. The most recent being the April 19th 2023 earnings call in which they just announced it.
This is huge.
And it’s interpretable in two ways, only one of which makes sense.
It’s genuinely great news for the planet, medium and long-term Tesla investors and fans . . and very scary for incumbent auto makers and other EV startups.
In Q3 2022, Tesla had been talking and looking like plain sailing, huge demand, hitting top car in places like Germany, continued insanely high profit margins . . and even share buy backs.
But then a stack of things happened over the last 6 months:
- Tesla demand at that price likely did indeed drop a little in China and elsewhere
- Macroeconomically, we had a year of inflation hitting consumers
- In the US a $7500 rebate switched in for battery EVs in January 2023 but with an upper sticker price limit
- Tesla dropped prices globally by up to 15%
- And then further dropped…
