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by new_realist 2522 days ago
ASP on the Model 3 has been falling quarter over quarter, as have margins. S and X demand and prices have dropped significantly.

Model 3 prices dropped yet again less than a week ago.

1 comments

Your comment directly conflicts with what was stated in this letter:

>During the quarter, a majority of orders continued to be for a long-range battery option and the Model 3 average selling price (ASP) was stable at approximately $50,000. At the same time, manufacturing costs continued to decline.

Yes, the ASP was stable... during the quarter.

In 2018 the Model 3 ASP was above $57K.

It is a bit misleading to use an ASP number from 2018 as a measure of demand since they weren't delivering the entire range of vehicles at that tine. Tesla started out focusing on the cars with a high price and margin which artificially increased the ASP over where it would naturally settle. Therefore a decrease from that initial high is not any type of indicator of demand.