Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Tesla price cuts have analysts split

% of readers think this story is Fact. Add your two cents.


Tesla (NASDAQ: TSLA) price cuts on its electric vehicles have analysts split on whether the move is a way for the company to regain critical market share in various markets, or if its an indication that demand for its cars is slowing down.

Tesla has cut prices on its EVs five times so far in 2023 in the United States. The most recent cuts reduced prices by between 2 and 6 percent.

However, analysts are undecided about what the cuts mean. Of course, it depends on what each analyst feels about the stock, as the price reductions could be argued as a sign of strength or weakness.

Tesla implements fresh round of price reductions for its Model S3XY lineup

Guggenheim Securities analyst Ronald Jewsikow said the firm expects “investors to view price cuts as a negative as it runs counter to TSLA recent commentary (as recently as early March investor day) suggesting strong demand.”

The price cuts are expected to hurt Tesla’s margins, which were among the strongest in the industry. “All of our demand trend work has pointed to slowing demand into March, with wait times flat to negative (globally) across all models and inventory building.”

Jewsikow also mentioned the recent addition of the 4680-equipped Model Y built at Gigafactory Texas as “a negative mix shift for U.S. orders in the near term if consumers’ response to the modestly lower price point is higher than we expect.”

There are two sides to every argument, however, and the automaker’s price cuts could be a sign of Tesla’s “unique characteristics” that will help it resurge its U.S. market share.

“I do think that this strategy of cutting prices gonna lead to a higher sales, and fortunately for them, they do have some unique characteristics that make it so they don’t have to sacrifice too much on profitability,” RBC Capital Markets analyst Tom Narayan said.

Even bullish analysts are seeing the price cuts as “near-term pain, long-term gain.” Dan Ives of Wedbush is one of these analysts, and in an interview with CNBC yesterday, he said the cuts leverage strength against its competition, as its EV scalability is “unmatched.”

While GM, Ford, and others continue to try and keep pace, Tesla is making moves to stimulate demand, increase sales, and push more cars out the door. Its record delivery count in Q1 shows demand is undoubtedly healthy, but Tesla should be aware of potential hits on the stock price if margins are heavily affected.

Tesla shares are up nearly 2 percent at 1:34 PM on the East Coast.

Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at [email protected]. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at [email protected].

The post Tesla price cuts have analysts split appeared first on TESLARATI.


Source: https://www.teslarati.com/tesla-tsla-price-cuts-analysts-split/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.