Tesla keeps slashing prices, this time by as much as 20%
Tesla shares dropped as much as 65% in 2022, their worst year on record. With the recent news of Tesla’s slowing sales growth and the company slashing prices by as much as 20%, some investors are worried that Tesla’s stock price will plummet further.
This month, Tesla announced to cut prices for U.S. buyers by as much as 20%. The Model Y starting price now is around $53,000, down from about $66,000. 🤯🤯
This is at least the fourth time the automaker has discounted its vehicles. The price reduction trend kicked off in October when Tesla announced price cuts in China up to 9% on the Model 3 and Model Y. Earlier this month, Tesla reduced prices for Chinese buyers again, this time by nearly 14%.
With such aggressive price cutting due to the competitive EV industry, many investors worry its direct impact on Tesla’s profitability and margin.
Currently, Tesla enjoys a supreme Gross Margin of 25% and Net Margin of close to 15%.
Do you think the company’s move of aggressive price cutting is a sign of the company weakening? Comment below and let us know your thoughts!
Do you think the company’s move of aggressive price cutting is a sign of the company weakening? Comment below and let us know your thoughts!
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Deep Value :
iShYnE22 : sounds to me like people are running out of money and elon wants to sell cars not sit on them
SupRatt : Investors worry way too much and the short sellers bears and Elon haters are always making nonsense noise to try to get you to sell. Buy low and hold. Tesla’s years ahead in profit margins and their technology is beyond our comprehension. When you hear Tesla you think electric cars no other brand does that.
Silverbat : Could be more in summer
ThirtyOne SupRatt: Facts
TeslaSmurf : WRONG
They forget to say that Tesla raised prices up to 20% in 2022 due to excessive demand.
In the second part of 2022 they increased production by A LOT (+60% Shanghai alone and they are applying the same “care” to Fremont right now) and they have to sell them in the middle of the economic uncertainty: normal to get prices back to where they were CALCULATED.
PLUS, supply chain and logistics are seeing lower prices and Tesla is getting HUGE scale-cost reduction for increasing production basically in the same factories. ADD the production ramping up at Austin and Berlin…
GAMEOVER: the so-called “competition” will be smashed…
Would you buy a heavier, less efficient, less performant AND 11 to 19K more expensive Ford Mach-e rather than a Model Y ?
Oh, I was forgetting Tesla’s incomparable Supercharger network AND the Model Y higher autonomy…
What about the on-the-air software updates and (eventual) needed recalls ?
The so-called “competition” is YEARS behind.
啸鹰飞翔 Silverbat: ni
Dylinh : Tesla slashing prices because they have lost lots of buyers. They can't compete anymore, so they have to slash prices to draw back the buyers. It's all business strategies and common sense.
Racehorse : Deep Value I think your comment is right on!
Tesla cars are not cheap...so slashing price so more people can afford them is a smart move
considerate Kiwi_974 Dylinh: Tesla may has slashed price but still making good profit while the rest of EV makers are still in red. By squeezing into their market share, Tesla will eliminate them one by one until she dominates the market. Short term pain but long term gain.
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