Cars and Drivers

Customers Can Get New Tesla P85D This Month

Why wait for the new P85D Tesla super car that sells for as much as $105,670? Tesla Motors Co. (NASDAQ: TSLA) will start to deliver the cars this month. Drivers who want superfast cars will have to sit longer for delivery of General Motors Co.’s (NYSE: GM) 2016 Cadillac CST-V. Tesla could have a problem with low demand because its remarkable glow with the public and investors has started to disappear, or because the P85D is too expensive.

The short line to get a P85D may be an important Tesla problem, but it is not the only one. The company recently announced it would cut workers in China, which is considered among the essential markets for global luxury car sales. The Wall Street Journal reported:

Tesla didn’t provide details on the extent of the cuts, and declined to comment on Chinese media reports that said the company would cut 180 jobs, or 30% of its workforce in the country.

Sales in China for luxury cars, which include Audi, have been essential to their worldwide expansion.

Investors in Tesla shares should worry that its sales problems are not limited to China. Rumors have started that the revolutionary manufacturer has suffered a drop in demand elsewhere. And its shares have dropped 14% this year, after an extraordinary run.

Among the guesses about why Tesla has begun to struggle are low gasoline prices. However, as a cult car with tiny sales, Tesla should not have that problem. Quality is not an issue. Tesla’s cars have topped more than one list of industry quality.

Tesla may have become a victim if its own success. Almost every major global manufacturer has rushed cars to market to try to blunt its lead. While some of these cars have small gas motors, which Tesla does not, the distinction might not be important to buyers of high-end cars with next-generation motors. An example of this is the upcoming launch of the BMW i8 super car, which will retail for $136,500.

Tesla’s role as the leader of the new, green car of the future seems to have disappeared. For the time being, people don’t have to wait in line to get its new flagship.

ALSO READ: Will Air Pollution Kill the Car Market in China?

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.