Tesla (NASDAQ: TSLA) stock fell over 3% in the intraday trading Monday after the EV giant announced price cuts in major markets including the U.S., China, and Germany.
Tesla (Tesla), the pioneering electric vehicle (EV) maker, has initiated a series of price cuts in various key markets, including the United States, China, and Germany. The move aims to stimulate demand amidst escalating competition in the EV sector.
Tesla Strategic Price Cuts: Details
On Friday, Tesla announced a $2,000 reduction in the prices of its Model Y, Model X, and Model S vehicles in the U.S., along with a price cut for its Full Self-Driving driver-assistance software, now priced at $8,000 down from $12,000.
The EV giant in China slashed the price of its Model 3 by 14,000 yuan, bringing it down to 231,900 yuan (approximately $32,000), as per information available on the company’s website on Sunday. Similarly, in Germany, the company reduced the price of the rear-wheel-drive Model 3 to 40,990 euros (around $43,670) from 42,990 euros.
Tesla also confirmed price cuts on select vehicles in other regions, including Europe, the Middle East, and Africa.
The decision to lower prices comes amidst CEO Elon Musk’s postponement of his highly anticipated trip to India due to significant Tesla commitments. Musk, who was expected to meet Prime Minister Narendra Modi during the visit and unveil plans for Tesla’s entry into the South Asian market, expressed regret over the delay, stating,
He said,
“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year.”
Tesla stock has faced a significant decline of 41% year-to-date amid subdued EV demand, intense competition from Chinese rivals, and various company-specific challenges. These challenges include dwindling deliveries, surplus inventories, a Cybertruck recall, analyst downgrades, and scrutiny over Musk’s $56 billion pay package. Investors eagerly await updates on these matters and others as Tesla prepares to announce its first-quarter 2024 earnings after the market closes on Tuesday.
Tesla (NASDAQ: TSLA) Stock Reaction
At the time of this report, TSLA stock sits at $142.05, showing a 3.40% decrease from the previous trading session. This week, it has seen a 12.03% decline in value. Trading activity indicates that 106,569,318 (106.56 million) shares have been exchanged, surpassing the average daily volume of 101.16 million.
