April 22, 2024 - $Tesla (TSLA.US)$ shares dropped 3.5% to $141.90 in intraday trading on Monday.

Last Friday, Tesla has cut prices for its Model Y, Model X and Model S vehicles in the U.S. by $2,000 each, and on Saturday it reduced the price of its Full Self-Driving driver-assistance mode in the U.S. by about a third, from $12,000 to $8,000.

Tesla also cut prices of its Model 3, Model Y, Model X and Model S in China by nearly $2000 US dollar. Tesla said it also cut prices on some models in Europe, the Middle East and Africa.

Tesla Chief Executive Elon Musk said in a post on X that "Tesla prices must change frequently in order to match production with demand," responding to a comment regarding the company's multiple price cuts over the past months.

Earnings Preview

Tesla is scheduled to release its financial results post-market on April 23. Faced with falling sales and an intensifying price war for electric vehicles, Tesla has lost nearly 40% of its value in 2024.

Consensus Estimates

• This electric car maker is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -39.48%.

• Revenues are expected to be $22.52 billion, down 3.46% from the year-ago quarter.

• Free cash flow is expected to be negative for the first quarter, marking the first occurrence since Q1 2020, according to Barclays.

• Over the last four quarters, the company has beaten consensus EPS estimates two times.