Hello and welcome to the Wednesday January 2nd 2019 edition of

The 2019 edition of Tesla Daily Unofficial Tesla Podcast. Happy New Year everybody.

My name is Rob Mow. We got a lot to cover today. We got Q4 production and delivery results

from Tesla and we also have a price reduction in the US on all Tesla vehicles to discuss.

Let's start first with what Tesla did actually report and then we'll go into some analysis

on it and what the stock did today.

Two big pieces of news first of which Tesla dropped the prices on all vehicles in the United States by $2,000, meaning the mid-range model 3 now starts at $44,000.

This of course is coming on the heels of the tax credit

being cut in half in the United States.

With the $2,000 price decrease,

that means the Tesla is absorbing a little bit more than half of the

$3,750 impact of the federal tax credit being cut in half. Now of course whenever

there are price decreases, two main concerns pop up, number one margins and number two, demand.

We've talked a lot about demand, so I won't go into detail on that.

I remain unconcerned, especially now that we do have the Q4 numbers, which I'll talk about

in a moment. And then on the margin piece of it if we

simply took $2,000 off of each vehicle Tesla sells and assume that they sell 90,000

and a quarter which is pretty close to what they did this quarter then that would be

180 million dollars less in revenue

that they would capture on those vehicles sold.

And of course, that would come straight off of the bottom line.

If we applied that $180 million reduction to revenue of $7.5 billion or so for a quarter like that.

...