Hey everybody Rob Maower here and today we are talking about a price cut on

Tesla's model S an update on the full self-driving rewrite, an S&P credit rating

upgrade, some news out of China, India, and a couple other topics as well.

We'll start off with the price cut, Tesla today in the U has lowered the base price for both the long range and the performance version of the model S by $3,000, meaning the starting price has dropped from about $75,000 before to about $72,000 now.

And Tesla has similarly cut the price in China

for the model S by about 3%.

I don't believe it has been updated in Europe,

but all the pricing in those markets are different. so let me know otherwise if it has changed in your market.

This is the second price cut on the Model S this year following a $5,000 price cut on the vehicle back in May,

which also applied to the model X at that time.

Interestingly, this update is only for the model S, not the model X.

That means the base price spread on both the long-range and performance versions of these vehicles is now $8,000.

I don't think this is terribly surprising given the fact that we are now in Q4 and Tesla does

still have a shot at hitting 500,000 vehicle deliveries this year, but it's going to take every single

vehicle to do that, I think. And on the SNX combined, unfortunately, Tesla doesn't break those

out individually anymore, but on those two vehicles combined, they have been producing and delivering under the capacity.

Tesla in their Q2 update letter said that they had a current installed annual capacity out of Fremont for SNX combined at 90,000 per year, that's 22,500 per quarter,

but Tesla hasn't delivered more than 20,000 S&X combined since the end of 2018.

Excluding the first two quarters this year due to production shutdowns, Tesla since that point in time has averaged production of around 16,000 SNX per quarter, so they certainly seem to have some additional capacity, and that should be the case for batteries as well because these use the 18650s from

Panasonic in Japan which have previously accommodated SNX run rates around 25,000 per quarter.

In Q3 Tesla produced around 17,000 S&X. In our previous conversations about

potential Q4 production, I just held that study at 17,000. I now think that

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