WSJ Reports on Tesla Registration Numbers for April/May

Rob Maurer

April / May Vehicle Registrations

(TSLA) -Get Report headlines today were driven by a report this morning from The Wall Street Journal discussing April and May vehicle registration research from Dominion Enterprises. Dominion’s research suggests Tesla’s US registrations in April and May combined fell 33% percent year-over-year to 14,151 vehicles in the 24 states where data was tracked.

A year-over-year decline should be expected given Tesla's coronavirus-related production suspension at their Fremont factory for seven weeks from late March to early May. Tesla operates with the leanest inventory of any automaker with just 20 days of inventory worldwide at the end of March, compared to 100 days for Ford and 81 days for GM, for example. Because of lean inventory, registrations correlate more with production than demand so with production halted, it is not surprising to see registrations decline.

Additionally, Tesla's Fremont facility supplies Europe, so it would make sense for Tesla to ship May's production to Europe to ensure those vehicles can be delivered before the end of Q2 rather than be sitting on a boat. As quarter-end approaches, Tesla will then allocate production to North America where the lead time from production to delivery can be more compressed. This strategy allows Tesla to maximize deliveries within the quarter.

Dominion says that Tesla outperformed the broader automotive industry, for which it claims registrations were down 43%.

Lyft Commits to 100% Electric by 2030

(LYFT) -Get Report announced a plan today to transition to 100 percent all-electric or zero-emission vehicles by 2030.

“Now more than ever, we need to work together to create cleaner, healthier, and more equitable communities. Success breeds success, and if we do this right, it creates a path for others.” - John Zimmer, co-founder and president, Lyft

These are worthy aspirations, though it remains a bit unclear on how Lyft intends to meet this goal. It appears that Lyft doesn’t plan to “ban” drivers with gas-powered vehicles, assuming that such a measure would not be required to achieve such a goal.

Writing assistance by Pranshu Agarwal

Comments (10)
No. 1-5
JoelS
JoelS

Love your stuff Rob. Glad to see you extend your reach.

mickyb
mickyb

Am in UK following Rob's erudite and finely tuned observations on Tesla and Ev market. Don't make a move on TSLA stock until you hear from Rob

Kyle Riebeling
Kyle Riebeling

Made it hear from Youtube patron. I liked posts all the way back to April. I appreciate your work brother.

Steve-66
Steve-66

Once again you have outlined a key point missing from essentially all other coverage on this topic! Looking forward to seeing your updated estimate numbers for Q2, or is it time to just wait for the actual results at this point?

Corinth
Corinth

Good to see you keeping the record straight, and adding some very helpful context to The Street's reporting. Always nice to see when a system works!


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