Published on October 23, 2020 |
by Johnna Crider
October 23, 2020 by Johnna Crider
Stephen of the Solving The Money Problem channel on YouTube recently posted a video titled “Tesla Dominating Competition in US & China (Europe Next)”.
He mentions that Tesla has just started shipping Model 3s produced in China to Europe. This gave the opportunity for some Tesla critics (especially bears and short sellers) to step out of left field to share their view that Tesla is running out of demand in China.
In his video, Stephen asked an important question. “So if you were to take just a totally wild guess, where do you think it would be more economical to produce a Model 3?” In China, paying Chinese wages with a localized supply chain sourcing most of its materials and parts from China, or at least Asia, versus manufacturing the equivalent vehicle in California by paying California wages with a much of the US-based supply chain?
He pointed out that his intuition was that it was more economical for Tesla to produce its Model 3s in China – with huge margins.
“Tesla Autopilot gracefully dodged a road blockage in China, revealing how far the driver assistance system has come”: pic.twitter.com/Ec0sOiUYcY
– TESLA_saves_lives (@SavedTesla) February 12, 2020
Tesla’s demand in the United States is strong
One of the reasons Tesla decided to start shipping Model 3s from China to Europe may be that the demand from the United States is so high. Remember that Tesla is now producing the Model Y in California as well as the Model 3, which limits the production capacity of the Model 3. If Tesla ships cars from China to Europe, it can deliver more produced vehicles to United States to buyers in the United States.
According to Good car Bad car, Tesla recorded a sales increase of 104.28% in September 2020 compared to September 2019. Tesla last month sold 47,036 vehicles in the United States, according to their estimates, more than double what had been sold in September 2019 (23025).
“It tells you everything you need to know about what’s going on – at least in the United States – right now,” Stephen said in his video.
As CleanTechnica Director Zach Shahan recently wrote that Tesla stands out this year compared to the rest of the industry. Tesla’s U.S. sales, according to our estimates, were up 22% in Q3 2020 compared to the same quarter of 2019, while the overall auto market was down 9%. In fact, Tesla’s result was the second best in the industry.
In the first 3 quarters of the year overall, Tesla was down slightly, by 2%, but it was the best in the business and clearly linked to the closure of Tesla’s factory in Fremont for a while. time due to the coronavirus pandemic.
Detroit News also reported that very few automakers had profitable quarters after the coronavirus pandemic, but Tesla was one of those few, with global second quarter sales up 2/5% from the first quarter. In addition, its 3rd quarter sales were 44% higher in 2020 than in 2019. CleanTechnica also reported this with our unique charts showing long-term Tesla vehicle sales growth.
“The way I see Tesla stocks, their market cap and their current valuation is really based on the fact that there is more visibility into what the future of Tesla looks like in terms of probabilities,” said Stephen. “The odds – the future looks very bright. We can see further for Tesla than most other companies in the investment landscape.
“That’s why Tesla’s valuation is so crazy right now – because people can see more than a day or two in front of their feet. More than one or two terms, more than one or two years. We can see a decade and more into the future and the future is incredibly bright. It’s a done deal. Tesla won the decade and the market recognizes it.
“That’s why, at the moment, Tesla sells half a million vehicles a year, but values more than all the other automakers combined – because we can see so much further into the future and the future shows that the Most of the other automakers were bankrupt by the end of the decade. And Tesla dominates electric vehicles, energy, and more. “
“In my opinion,” Stephen pointed out, “Tesla won the decade, and it’s about watching it unfold.
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