Tesla Inc. continues to lose money as it sells more cars. On Wednesday, the electric car company announced a second-quarter net loss of $408 million.
Straubel goes back to the beginnings of Tesla. In 2004 he and Chief Executive Elon Musk linked up with founders Martin Eberhard and Marc Tarpenning, who had started the company a year earlier. After the original founders left Tesla a few years later, it was Musk and Straubel who led to the company to its present state.Straubel, 43, told stock analysts Wednesday that “this is not a lack of confidence in the company or the team or anything like that.
That’s because Model 3s carry a lower price — and profit margin — than older-model S and X vehicles, and Tesla has cut prices of all models.The price cuts are evidence that Tesla has a demand problem, said Mark Spiegel, whose Stanphyl Capital hedge fund is betting the company’s stock price will dive. “Any thinking person knows you don’t cut prices on your product unless you have to,” he said.
Pricing will remain under pressure as federal subsidies run out for Tesla buyers. Starting July 1, the federal tax credit for Tesla fell to $1,875 from $3,750. A previous cut in the subsidy amount in January, from $7,500, dragged down sales and profits in Tesla’s first quarter. Tesla’s subsidy will disappear in January unless Congress renews it. In the meantime, buyers of electric cars from Jaguar, Audi, Mercedes-Benz and others still quality for the full $7,500 rebate.
Guillen, a former Daimler executive who had been running Tesla’s semi-truck project, was put in charge of the company’s Fremont, Calif., auto factory last year. That came after an extreme attempt to automate Model 3 production that
joesteel Joe, are you ok?
“Even more stunning than loss...that Chief Technology Officer J.B. Straubel is leaving Tesla. Straubel goes back to beginnings of Tesla. 2004 he+ Elon Musk linked up with founders Martin Eberhard and Marc Tarpenning, who had started company year earlier.” HARJGTHEONEDBA AP
You didn’t have to go to business school to perform like this. Take a look at my cousin.
That would explain the sharp, nay precipitous, decline in customer service. elonmusk
I thought Musk was a smart man? Raise the unit price.
musk snorting all that money up his nose lmao
Me write good English
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