I understand that the market is in shambles and that we are all to busy printing money on SPY PUTS, but I thought I would return to our regularly scheduled programming for a bit.
Just two weeks ago I ordered a Model Y, fully expecting to wait until the fall because of the huge number of pre-orders.
Well… to my surprise I got a phone call less than a week later telling me that my vehicle was ready for delivery (I DON’T live in Cali).
That math made no sense to me, as all of the Tesla sleuths show that they’ve only made AT MOST a few thousand cars.
Well… I get another call today from my handler to discuss specifics. I asked him/her how it was possible that I could be getting a car when I JUST ordered mine. S/he let out a big sigh and said that they have (a) had massive order cancellations “due to what’s going on right now” and (b) most of the people who ordered the cars are stuck in other leases until the fall (because they didn’t think the Y would be in production until at least then).
So, Tesla gets a car to production early. Oops, the global economy collapses, and none of your rabid fans can get out of their other leases until 6-9 months from now. Good fucking luck.
Does this mean Tesla is doomed in the long term? Absolutely not. If anything, there will be pent up demand and they will sell shittons at a later date (and have a great quarter). But short term things are going to be BAD.
TL;DR Beer virus + ahead-of-schedule production = no one wants Model Y’s for at least the next 6 months.
What do?: Personally I think Tesla’s quarterly is going to be…. horrible. Like, even worse than expected with COVID priced in. Thus, puts wayyy OTM after their quarterly are probably going to moon.
EDIT: I forgot to mention that s/he said that I would likely be the first delivery in my city, which is one of the top 5 cities in the USA (and crawling with teslas).
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.