Tesla Inc. lowered prices of some of his cars ModelY and model 3 in USA. is the sixth time that the company takes such a measure this year. It is an attempt to stimulate demand even at the expense of their profit marginsthe largest in the industry.
The cuts they know each other before the publication of the first quarter results of the manufacturer of electric vehicles, scheduled for Wednesday, and caused a share drop of almost 3% in the first operations. In the year-to-date, the company’s shares rose a little less than 50%, after registering its biggest annual fall in 2022.
recently too lowered prices in Europe, Israel and Singaporeas well as in Japan, Australia and South Koreaexpanding a discount campaign that began in China in january.
How much is the price cut?
Tesla’s website showed late last Tuesday that cut prices of their vehicles ModelY in US$3,000 each. while of the model 3the low price u$s2,000to $39,990.
So far this year, the company cut 11% the prices of your Basic model 3 and a twenty% those of his Basic ModelY in the United States, its biggest market, as Washington prepares to introduce tougher rules that will limit tax credits for electric vehicles.
Impact of these measures
Still, Tesla posted a sequential increase of only 4% in their deliveries of first trimestermuch less than the rise in 17.8% from the previous quarter.
That is why there are already several analysts who forecast more price cuts as increases competition from rivals like Ford Motor Co and Tesla competes with BYD in Chinaits second largest market.
For the first quarter, Wall Street expects the company’s gross margin to reach its lowest level in three yearswith a 23.2%according to 17 analysts consulted by Visible Alpha.
The market expects its revenue to increase by 24.2% year-on-year, to US$23.290 millionbut analysts’ median earnings estimate fell about 2.4% in the last three monthsaccording to Refinitiv data.
Source: Ambito
