Tesla, the electric car manufacturer, recently announced price increases for its popular Model Y in the U.S. and Europe, while offering discounts on inventory vehicles in China. The price of all Model Y trims in the U.S. will increase by $1,000, in Europe by around $2,100, with discounts of $1,000-$1,500 being offered in China.
Analysts have expressed concerns about Tesla’s pricing strategy, stating that it may not be helping demand and could be hurting the company. This comes as Tesla continues to grapple with high inventory levels. Despite this, Tesla stock rebounded after a drop, with analysts cutting delivery predictions for the first quarter.
Wells Fargo downgraded Tesla to underweight, while UBS lowered its price target and delivery forecast for the company. Analyst consensus shows a decline in Tesla’s earnings for 2024, with Morgan Stanley’s Adam Jonas also cutting his price target and earnings projections for the company.
Currently, Tesla ranks eighth in the auto manufacturers industry group, with a Composite Rating of 28 and an EPS Rating of 68. For more coverage on this developing story, follow Kit Norton on X, formerly Twitter, @KitNorton. Stay tuned to Guam News Factor for updates on this issue.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”