Not unexpected. In fact, the result is as expected as they sold more Model 3s and those Model 3s are cannibalizing their own more expensive Model S and Model X.
Why buy the much more expensive Model S/X when the cheaper Model 3 will do? Not a perfect replacement but 90% for a fraction of the cost? No brainier.
This past quarter is I believe the first full quarter for the Jaguar i-Pace entering the market. The next quarter will look even worse, with the Audi e-tron in the market for a full quarter also. The one after that would offer some relieve as there should be no new EV coming onto market, but the one after that will be the full force from the Porsche Taycan and the Mercedes EQC. But the only good news is that all the Taycan are pre-sold before delivery, so they had already stole the customers from Tesla, and Tesla technically won't lose more sales to the Taycan.
Tesla really needs to up it's game, The top end of the EV segment has now been occupied by Porsche and they had no hope of competing. The middle part of the segment will now have plenty of choices for consumers, Jaguar I-Pace, Mercedes EQC, Audi e-tron and Tesla's own Model 3, Model S and Model X. At least they are not into the low and bottom segment which are populated by Nissan Leafs and GM's Bolt and whatnots.
Now someone will again say Tesla is competing not against other EV but conventional cars. That statement is still wrong. General consumers are still not quite cross shopping either market, they do for an extend hence why the EV market is expanding, but it's not expanding as quickly as the other competitors are coming into the segment. Just for comparison, the whole EV market, top to bottom, is worth perhaps a few months of pickup productions from the Big 3, that's how small that market is relative to the overall automobile market.
Tesla's share of the EV market have peaked. They will never again command virtually 100% of the market, With luck, I believe they could hold onto perhaps just under 20% max of the EV market when the dust settles. As long as Elon doesn't run the company into the ground.
2020 will be the year of the blood bath in the EV market.
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