Pressure, It is On

Tesla has made many bold statements this year, unveiled what will be a new model and has addressed much of the media pressure surrounding different events for the company. While this is a company that does things differently than the rest, there are some things they must do the same in order to comply with regulations and keep investors interested. One of these items is announcing their sales at least on a quarterly basis. While most car companies announce their sales each month and we get to make predictions based on the numbers, Tesla only shows their results once a quarter.

Because the sales figures are only shared quarterly, Tesla only has four opportunities each year to make the right impression on their investors and the public and lately that impression has been that Tesla is going to lose money every quarter. For this year, Elon Musk, CEO of Tesla, has put the pressure on the third quarter. Not only is the goal to push at least 25,000 vehicles out the door, but he wants to create headlines that show Tesla as a profitable company rather than one that continues to lose money every time a report comes out.

For this reason, he has already pushed his team to try and reach this goal, with a goal of 50,000 vehicles produces for the entire second half of this year. His statement to the Tesla employees made it clear that this third quarter was critical because it’s the last quarter before the Model 3 reaches full production and they need to show the profitability and drive to create as many vehicles as possible. This 50,000 unit goal is close to the number of vehicles that were produced in all of 2015 and the company was only able to deliver 14,370 vehicles in the second quarter of this year.

While Tesla doesn’t have a typical dealership network that we’re used to, some buyers will be able to drive their cars right off the lot of the store because there will be some inventory ready and waiting to be purchased. Not only will these stores be set up with some inventory that can be sold right away, but there is expected to be some discounts given, as much as $7,500 on some models, which is a normal dealer sales tactic which you might not have expected Tesla to employ with their philosophy.

Not only does that make the third quarter of this year the best time for you to buy a Tesla vehicle, it also makes this quarter one of the most interesting for us to follow as we get to see how close the company is to reaching their goal of producing and delivering 25,000 vehicles during a thirteen week span. Will they be able to change the headlines as Elon Musk hopes? We’ll have to wait until the end of the third quarter and find out, but right now you have one of the best opportunities to buy a Tesla at a great price and should take advantage of it.

10.15.16 - Tesla CEO Elon Musk

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