Thursday, February 9, 2023

Tesla has a goal for 2023: Growing the waiting list again

While it may not seem like it at first, Tesla was forced to stimulate demand for its cars because it was not enough to keep up with the pace of production and delivery. So the price cut will not happen in time.

much is being said about cut prices Tesla did it first in China, then in North America and Europe. They are the core market for the brand of electric cars, and if we look at the cold numbers, there is a need lurking. Tesla needs a waiting list again,

Why do I say “again”? The purpose of a price cut, as the primary law of the economy says, is to increase the demand for goods and services. We’ve known for some time that Tesla had priced its cars above inflation, eroding its profits at the expense of customers. It’s perfectly valid in the business world: If you don’t like it, you can enter the competition, And many have, especially in China.

In recent months, Tesla has been reducing the demand for its cars, and you have to look not only at their sales, but also at how many people are waiting. Because if demand is met up to a certain point, there comes a time when there is no waiting, and then sales will decline sharply. Let’s see what the data tells us:

For those of you who don’t know Troy Teslake, he keeps track of Tesla’s waiting list using a calculation that has been very accurate to date. Tesla doesn’t provide that information, but it can be extrapolated considering lead times and delivery and production data. According to their calculations, between the last week of July to the last week of December Waiting list reduced by approximately 400,000 units,

The latest data published by Troy refers to the whole of 2022, but it is worth noting that waiting lists were almost zero in the US and Canada, as expected delivery times were less than a week, and in China they were closer. Zero too, only 3,086 cars. In Europe, inventories fell by a third compared to June’s level.,

Tesla’s price cuts in Europe are more related to this than anything else. There was going to be a time when factories were going to slow down due to lack of enough orders. The sales impact is already measurable in the pressure that has put factories back in Shanghai and Berlin, customers are not fools, and they will take advantage if prices drop.

These figures do not take into account price cuts in Europe or North America, as they predate them. In Troy’s next report, which will appear in a few days – the public is late, as he offers them to his paying customers first – we will see that the lists will have grown.

healthy thing for a carmaker, to be a projected demand And be able to make production plan correctly. This has to do with components needed without accumulating too much (stocking costs), but also not falling short (worse, halting production), or that workers’ routines are more accommodating and there is no need to request overtime. No more work. Worked. It costs money.

for tesla, That ideal period is between four and eight weeks, It won’t take them as long to deliver cars to customers, nor will they have as much uncertainty about demand. Also, since you were starting at prices with a decent profit, the markdown would potentially cause no harm, just a less attractive profit. “It’s the Market, Friend”,

for now, Tesla’s German customers have seen a one-month increase in waiting times for new orders Since the announced price reduction, at least for the versions that have seen the biggest price drop. The Model Y great autonomy and performance are practically the same, with a slight improvement in the prices. One thing leads to another.

To cope with the new demand, the Grünheide factory is still trying to expand its capacity to meet the workforce. It was at 3,000 units per week at the end of December, a milestone that has come two months late. and of course, Growing capacity means there must be more demandOtherwise the excess capacity may result in extra cost, a well-known evil in the automotive industry.

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Unless the raw material becomes expensive, Everything indicates that the discount is about to stay for one season, at least until the waiting list returns to its optimal level. The dream of any manufacturer is to have their factories maximize their capacity, have a steady supply of parts, and have the lowest possible cost per unit. Obviously, that goes for Tesla too.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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