Tesla Cuts Prices On Popular EVs To Boost Sales
Jan 13, 2023 By MarketDepth
Tesla (TSLA:NASD) has seen a few quarters of lagging deliveries and cut prices on popular vehicles by up to 20% to try and kick-start sales. The company cut the price of the Model Y by 20% in the USA and cut prices in Germany, UK and France. The company has already made two rounds of price cuts in China as sales is not meeting expectations.
The price cuts and missed delivery targets have been reflected on the stock price as Tesla stock is down over 60% over the last year and down 3% intraday.
Tesla has been a roadblock with production constraints but padded profit margins, but with sales dwindling and prices being cut the company is facing a difficult position. Many reasons why investors were attracted to the EV company was the bullish revenue and profit outlooks. As analysts review the stock they are downgrading the price targets which is causing pressure on the stock.