Hyperdrive
Tesla’s ‘Anemic’ High-Margin Model Sales Extends Profit Struggle
- Model S and X deliveries have slumped as Model 3 ramps up
- Elon Musk rules out refreshed versions of older models
A Tesla Model X charging.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
Tesla Inc. is delivering more cars than ever because of the emergence of Model 3 customers like Mike Land. His view of the relative weakness of Elon Musk’s more expensive electric cars also helps explain why the company is still struggling to make money.
The price tags on Tesla’s first two vehicles, the Model S and X, were too much for Land’s budget to bear. But the retired police officer probably wouldn’t want one of those cars anyway over his Model 3, since the older models no longer feature what he considers to be cutting-edge tech.