How foolish are investors?
Tesla missed its’ delivery estimates for the 2nd quarter of 2017 by a few percentage points by reporting it delivered 22,000 vehicles instead of the the 23,000 vehicles it had forecasted. The company, which had already lowered expectations by 3,000 units compared to its first quarter, blamed supply issues on , wait for it, the battery.
Its as if Tesla exists to sell batteries and consumers don’t want to buy…wait for it…long range electric vehicles. Where was the battery supply issue in the first quarter?
Besides, it is not like the company has only one kind of battery. Essentially it said its high end battery, the 100KWh silicon infused pack, was the problem, never mind that this battery was actually introduced august of last year.
Obviously though if demand was so great for Tesla’s cars they would have forecasted that the 2nd quarter delivery orders should have been higher than the 1st quarter, then the miss would have warranted a note about failing to meet supply. After all , since Tesla is in the business of selling cars, why introduce a battery that would hurt unit sales and …gulp… profits.
Of-course if you’ve been following me, you know I think Musk is a pathological liar.
He is therefore probably lying in my book. But hey, that doesn’t matter, roll on the Model 3 where he will have to produce, err exponentially more of these high tech silicon batteries that he’s having a supply problem with 6 months before he ramps to full capacity.
The reality really is this. If Tesla’s hot brand was in demand by consumers as much as Musk wants people to think it is on a global basis, the low end battery models would have made up for the delivery miss.