i bet!
Ahead Of Today's Q2 Numbers, Tesla Model S Registrations Plunge 54% In California
While everybody is focused on total delivery numbers, sales of Tesla's higher end Model S sedan have taken a huge hit in California, according to the Wall Street Journal. This is likely result of the company focusing heavily on selling its lower priced Model 3. The shift in product mix could wreak further havoc for Tesla's margins and eventual profitability goals.
This puts financial pressure on Tesla as the cheaper Model 3 is now tasked with trying to make up for falling sales of the higher margin models.
Registrations of new Model S sedans in the second quarter plunged 54% to 1,205 in California. The state is seen as a strong indicator of demand because it is Tesla's largest US market, representing 40% of all Model S registrations in the country last year.
Musk had built his business on the idea being able to deliver a combined annual total of 100,000 Model S and Model X vehicles. So far, in the first half of this year Tesla has delivered just 29,750 of the units, combined, which is down 33% from 44,100 last year.
Analysts are expecting total deliveries of the two models to drop 30% this year, compared to last year’s 99,400 total.
The plunge also says that the Model S could be losing its luster and may be due for a redesign. Redesigns, of course, require capital, which is at a premium at Tesla. Musk himself said earlier this month that no major refresh of the Model S was on its way.
There is no “refreshed” Model X or Model S coming, only a series of minor ongoing changes. Most significant change in past few years was to use high efficiency Model 3 rear drive unit as S/X front drive unit. That went into production 3 months ago.
— Elon Musk (@elonmusk) July 9, 2019
Tesla is scheduled to report second-quarter results on Wednesday that could shed more light on the product mix going forward. The company still says it is targeting at least 360,000 total global deliveries this year, which represents a 45% rise from last year.
The cheapest Model S continues to compete with the most expensive Model 3. Until recently, the price difference between the two was just $6,000. Now, it's about $16,000:
The most expensive Model 3 version now sells for almost $64,000, down from a fully loaded version going for about $69,000. Tesla last week increased the cost of the standard Model S to $79,990. It also effectively lowered the highest-priced version of the Model S to about $113,000 from about $130,000 by making the previous $20,000 Ludicrous Mode upgrade part of the performance version.
David Whiston, an analyst for Morningstar Research Services said: “The key is cash flow, and people will look for whether they traded profit for volume in Q2. Also, did they get enough [Model] 3 volume to offset the 21% decline in combined S and X sales.”
https://www.zerohedge.com/news/2019-07-24/ahead-todays-q2-numbers-tesla-model-s-registrations-plunge-54-california-0
we should find out if the PR issue that they "met' production goals was bullshit or not…remember they have NOT paid muh employee bonus' that they were promised for meeting that goal-at least have not given any indication they will
like the recent additions with descriptions
taught me a lot last year. filled in the gaps between comm and mil.
join you niggas on the weekend when I can
o7
Deutsche Bank Now Wants to Keep Some Equities Revenue After All
Lender moves 550 million euros revenue back from bad bank.
‘What is this business?’ one analyst asks on conference call.
Deutsche Bank AG finds parting with its equities business is harder than expected.
The German lender, which not even three weeks ago announced it was exiting equities trading except for a “targeted” sales force and research, flustered analysts on Wednesday after moving 550 million euros ($613 million) in revenue back to the investment bank from the wind-down unit it had just set up. The change of heart will force the bank to adjust some forecasts but won’t affect risk-weighted assets at the capital release unit, or CRU.
The change, in the footnote of a presentation, left Chief Financial Officer James von Moltke facing tough questions.
“What is this business, if it’s 550 million euros of revenues, with no risk-weighted assets, no leverage assets, no costs?” asked Stuart Graham, an analyst at Autonomous Research. “That sounds like a fantastic business, why was it ever in the CRU?”
It wasn’t the only explaining von Moltke had to do. The CFO earlier conceded that the recent reversal in interest rate expectations had caught the lender by surprise and could weigh on revenue. Shares of Germany’s largest bank slumped, with investors pondering the headwinds for the company as it embarks on the biggest cutbacks yet to its battered investment bank.
The decision to keep a bigger equities business, von Moltke explained, reflected input from the new management team and concerned services the bank provides to corporations. The additional revenue will provide a “slightly better starting point” to reach the trading unit’s revenue goal, he said.
“Think of share repurchase programs, selective margin lending and our view that we can continue or management’s view that we can continue potentially on a white label basis,” von Moltke said. “Another change is to see the listed derivatives business, there was some support” from that business for the fixed income operation, so that was moved back to the investment bank.
The change, Chief Executive Officer Christian Sewing said on the same call, “is no watering down of either our strategy decisions in terms of the equity sales and trading exit.” It simply seeks to avoid “giving up more in revenue at the coherence of our service offering than is absolutely necessary,” he said.
https://www.bloomberg.com/news/articles/2019-07-24/deutsche-bank-now-wants-to-keep-some-equities-revenue-after-all
when the ANALysts openly question them, it's the going off the plantation moment starting.
charged but settled for $50m for spoofing prices on the exchanges. HSBC, JPM and a few others all part of that cartel. The transcripts are ridiculous. Kind of comical but not ifkwim.
Fox studios, not news