Tesla cuts prices of models sold in the United States: "Eye-Popping"
For those who want to buy Tesla, now might be the time.
Courtesy of Tesla, Inc.
Model YAccording to The Wall Street Journal, the electric car company has reduced the prices of several models sold in the United States by percentages, including 14% off the sedan Model 3 and nearly 20% over its base Model Y crossover.
The company's stock price fell more than 3% on Friday's news, the outlet added.
Tesla also had a difficult year. It has faced a 65% drop in share price since January 2022, a record low for the company. Demand slowed and many, including investors and analysts, felt that CEO Elon Musk shouldn't spend so much time and money on Twitter and instead focus on Tesla.
Related: Tesla investors complain that Elon Musk spends too much time on Twitter - on Twitter
"By reducing the prices of its current models, Tesla is signaling that it is prepared to concede profits in order to increase sales volume," writes The New York Times.
>Some of the discounts, based on the number of add-ons Tesla customers include in their purchases, qualify customers for a tax credit under the Inflation Reduction Act, noted the WSJ.
The credit offers buyers $7,500 for electric car purchases under $55,000.
Similar price cuts were also made in Europe. Prices have also been reduced for Teslas sold in China.
Daniel Ives, an analyst at Wedbush Securities who tracks the company, said "it's no secret that demand for Tesla is starting to see cracks in this global downturn," in a text to Contractor .
He called the cuts "dazzling", because of the amount.
“While the initial reaction to these cuts was understandably negative on [Wall Street] at first, we believe it was the right strategic poker move by Musk & Co. at the right time,” Ives added. .
For those who want to buy Tesla, now might be the time.
Courtesy of Tesla, Inc.
Model YAccording to The Wall Street Journal, the electric car company has reduced the prices of several models sold in the United States by percentages, including 14% off the sedan Model 3 and nearly 20% over its base Model Y crossover.
The company's stock price fell more than 3% on Friday's news, the outlet added.
Tesla also had a difficult year. It has faced a 65% drop in share price since January 2022, a record low for the company. Demand slowed and many, including investors and analysts, felt that CEO Elon Musk shouldn't spend so much time and money on Twitter and instead focus on Tesla.
Related: Tesla investors complain that Elon Musk spends too much time on Twitter - on Twitter
"By reducing the prices of its current models, Tesla is signaling that it is prepared to concede profits in order to increase sales volume," writes The New York Times.
>Some of the discounts, based on the number of add-ons Tesla customers include in their purchases, qualify customers for a tax credit under the Inflation Reduction Act, noted the WSJ.
The credit offers buyers $7,500 for electric car purchases under $55,000.
Similar price cuts were also made in Europe. Prices have also been reduced for Teslas sold in China.
Daniel Ives, an analyst at Wedbush Securities who tracks the company, said "it's no secret that demand for Tesla is starting to see cracks in this global downturn," in a text to Contractor .
He called the cuts "dazzling", because of the amount.
“While the initial reaction to these cuts was understandably negative on [Wall Street] at first, we believe it was the right strategic poker move by Musk & Co. at the right time,” Ives added. .
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