Brokerage: Tesla could be sitting on 3,000 unsold cars

Model S - Picture courtesy slashgear

The Rule of Scarcity plays a large role in the persuasion process, as any pop psychologist can confirm. Nobody knows that better than master salesman Elon Musk. Waiting times for a Tesla are legend. If you believe the on-line chatter, the Model X is basically sold out for 2015. Is the scarcity for real? John Lovallo, a research analyst at Merrill Lynch, wanted to find out.

In the case of the Model X, Lovallo did not have to dig deep. The way it looks, there won’t be a Model X in 2015. As far as the Model S is concerned, Lovallo was told by Tesla that “essentially, in the third quarter, we sold every car that was. Including cars in, like, showrooms, and everything we basically had.” But then, Lovallo started going through the books, and he found that “Tesla’s finished goods inventory at the end of 3Q appears to tell a different story.” [Continue Reading]

Sold for cash and left for dead, Mazda and Mitsubishi return to profitability

About $100, but buys much less

 

Last year, the Japanese yen returned to barely normal from vastly overrated (those who call the Japanese currency “undervalued” are invited to Tokyo to see how far those allegedly cheap yen go – taking the subway to the press conference and back costs $10). No one was more relieved about this than Japan’s second-tier automakers. With most of their production still in Japan, companies like Mazda or Mitsubishi suffered the most from the obscenely high currency. Now suddenly, it is possible again to make a profit by making cars at home. For the first nine months of its fiscal, Mazda booked an operating income of 124.6 billion yen ($1.23 billion), up 534%. Mitsubishi Motors delivered operating income of 55.4 billion yen ($548 million) in the same period, an increase of 135%. [Continue Reading]

Profits THAT high – but what will Toyota do with all the money it earned?

Profits THAT high - Picture courtesy Bertel Schmitt

Helped by a strong U.S. market, cost cutting, cautious CAPEX, and a – finally – lower yen, profits of Japanese automakers are up sharply, so much that people already cast desirous eyes on the money pile, and develop ideas on how to spend all that money. [Continue Reading]