Tesla Model S Demand Still Strong

MAY 7 2014 BY ERIC LOVEDAY 15

Tesla Model S Assembly

Tesla Model S Assembly

Despite reports to the contrary, Tesla Motors insists that demand for its Model S is still as strong as it’s ever been.

As Value Walk writes:

“Tesla Motors Inc has rejected recent reports around the slowing Model S demand. Barclays said in a research note earlier this week that the Model S demand in the U.S. has plateaued. But the electric vehicle maker said during the investor meetings organized by Goldman Sachs that the demand is still strong.”

“The company is focused on reducing the waiting times globally. Therefore, it won’t have plenty of supply to sell in the U.S. at this time.”

So, if sales seem soft in the US, it’s because Tesla is playing catch up overseas.  This is immediately obvious in regards to Tesla Model S sales in Norway, which in March shot up to an all-time single-month record for any automobile ever sold in Norway.  That month, 1,493 Model S EVs were sold.

Source: Value Walk

Categories: Tesla

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15 Comments on "Tesla Model S Demand Still Strong"

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People that know about the Model S want a Tesla.

Is there anyone who has test driven Model S and yet decided to buy similarly priced ICE car?

My guess is that when Tesla is starting to offer test drives on every small town on Earth, the demand for Model S and X will increase more than ten fold.

Everyone with Google stock already has one.

If Norway can buy up over 1400 in one month then it’s not out of the question that the same existing factors are still in play to sell over a 1000 in April.

Norway bought 171 Teslas in April.

Tesla sold UNBELIEVABLE 48 Model S in April in Germany, total 287 Units this Year.

Looks like its not possible to sell at least 1000 units in a Year in Germany.

My guess: More SCs.

How many cities there are in Germany where you can test drive Model S? People typically does not buy cars without test driving first.

And more over, if Tesla had sold more in Germany, then on which part of global market Tesla should have sold comparably less? Today Tesla sales are production limited, not demand limited.

Germans are also notoriously nationalist when it comes to buying cars. And I have absolutely no idea why that preference exists…

Oh wait, yeah, it’s because for the past 80 years, they’ve been building the world’s best cars.

Only a small percentage of German car sales are from foreign automakers. They’re really proud of German engineering. In the luxury segment, it’s almost 100% German
(Audi/BMW/MB/Porsche).

On top of that, Germany is the only place you can actually use 130MPH+ speeds. I think it’ll be tough for Tesla to break through there, but 1,000 units should be easy to beat if they allocate enough supply.

Those of us who follow Tesla already knew this. They said this nearly a year go

It will remain true until demand levels out (which the introduction of the Chinese market will guarantee that international demand will NOT level off any time soon).

As such, NA sales will remain tepid until their production is ramped up to meet global+domestic demand.

All car models have a (pent up) demand peak close to launch.

I do not see any reason to fret about it.

I’m not worried about demand. I’m worried about supply.

Elon says battery availability “should” get better next quarter, but I haven’t seen any logistics that explain how this will be done. If demand has surpassed world supply, how will Tesla continue to increase units/month before a gigafactory comes to fruition? By how much?

It is more expensive and slower to increase car production capacity than battery production capacity. Installing new battery production lines takes just months, but to increase car production capacity considerably, it takes very careful ROI calculations and financing.

Therefore there cannot be long term supply problems with batteries. It is more probable that when the demand for electric car batteries will increase rapidly, we will see even bigger surge on battery production capacity and this inevitably will lead into serious overcapacity problems.

We have saw this overcapacity issue before with batteries, but more clearly with solar panels. Therefore if you want to bet on something else than Tesla, then bet on the bankruptcies of battery manufacturers! At some point China is starting to invade battery markets and they do not fear to use protectionism and subsidies in order to drive non Chinese battery manufacturers out of business.

My question would be “will the new new factory produce a better battery and by how much?

Tesla does not assume major improvements in battery chemistry in near future. But their investment decision for gigafactory is based on projections that they can gain about 30 % price reduction due to larger scales and optimization of battery component supply chain.

Naturally any quite probable, although unpredictable, improvement in battery chemistry will assist Tesla even further. Therefore gigafactory should be quite sound investment.

Also it is better for the company if batteries are not outsourced.