lowered “Tesla” All its cars are priced in the US and European markets under the manufacturer’s efforts Electric cars To revitalize demand following several seasons of disappointing sales.
The company dropped the price of its cheapest model, the Model Y, by 20%, and deducted up to $21,000 from its highest-priced cars in its home market.
Tesla also implemented deep discounts in other countries, including Germany, the United Kingdom and France, a week following the second round of sales in the United States China Since October.
These major adjustments pushed Tesla shares down, as they reflect the crisis the company is facing following its business results showed a failure to achieve the car sales target despite the incentives and reductions it approved at the end of the year.
Tesla cars are 40% cheaper in China than in America, following a new price cut
In order to continue to grow and fully exploit the plants it opened or expanded in last year, Tesla appears to be giving up the profit margins that Wall Street celebrated when the company was facing production hurdles.
Tesla shares lost up to 6.4% of their value before the start of the trading session. Shares of other auto companies, including them, also declined “Ford Motor” AndRivian Automotive.
In a note to clients released on Friday, Chris McNally, an analyst with Evercore ISI who advises the equivalent of holding Tesla stock, wrote: “Tesla’s bottom line will be significantly affected in the short term. The value of this depends on how long the new prices remain in force.
Even if the price cut only applied for a year and then Tesla partially canceled it, earnings per share in 2023 might end up 30% or 40% lower than the current consensus, McNally estimates.
