Tesla is off to a challenging start for 2024. In Europe, Germany is ending the EV subsidies earlier than expected to balance its budget. In response 1/17/2024, Tesla reduced its prices in Germany as reported by Reuters. https://www.reuters.com/business/autos-transportation/tesla-cuts-model-y-prices-germany-after-china-price-cuts-2024-01-17/
| New price | price dropped | |
| Model Y Long Range | 49,990 euros | -5,000 euros, -9% |
| Model Y Performance | 55,990 euros | -5,000 euros, -8.1% |
| Model Y RWD | 4.2% |
Houthi militants’ attacks on ships in the Red Sea have disrupted shippment of parts and impacting supply chain. Tesla announced a 2 week production halt in response in 1/11/2024 https://www.reuters.com/business/autos-transportation/tesla-berlin-suspend-most-production-two-weeks-over-red-sea-supply-gap-2024-01-11/. In March 2023, Giga Berlin achieved production rate of 5,000 Model Y/week. If that is current rate, two weeks hits production with a drop of 10,000 Model Ys. Their Q4 2024 earnings release showed global inventory of 15 days. If demand is satisfied with inventory, this factory halt should not affect 2024 deliveries. This halt also should be a a one time hit as ships now use the longer route without going through the Red Sea via southern tip of Africa. This first trip takes extra 10 days. So after the first shipment using this new route, subsequent shipment reestablished the steady supply flow without delay.
1/17/2024, China Q4 2023 GDP came in at 5.2% missed expectations of 5.3%.
1/16/2024, Elon Musk hinted that he needs to own 25% of Tesla to be comfortable with advancing AI at Tesla. He is fine with a dual class stock ownership that grants him more voting power. If this has to be done via more share grants for him this will dilute share value for existing shareholders. If the grants are tied to Tesla achieving a much higher valuation from where it currently is then Tesla shareholders may accept such a compensation plan. https://www.cnbc.com/2024/01/16/elon-musk-wants-more-control-of-tesla-seeks-25percent-voting-power.html?&qsearchterm=musk%2025%
1/11/2024, December Consumer Price Index is up 0.3%. Inflation fears can cause higher interest rates or delay in rate cuts, making big ticket items more expensive to finance for consumers. https://www.bls.gov/news.release/cpi.nr0.htm