Is Elon Musk Doing More Harm To Tesla Than Good With Price Cuts? Analyst Highlights A Troubling Data Point
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) has been facing economic worries impacting demand for its vehicles, leading to a series of price cuts early this year. However, the average price of a used Tesla vehicle has fallen by over $25,000 from its peak last July, a 37% decline. This has led to concerns about the efficacy of the price cuts and margin worries. Tesla's price cuts have also led to gross margin erosion since the fourth quarter of 2022. The company's stock ended Tuesday's session down 2.38% at $261.07.
August 04, 2023 | 10:41 am
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Tesla's price cuts have led to a decline in the average price of used vehicles and gross margin erosion, which could negatively impact the company's stock.
The price cuts have led to a decline in the average price of used Tesla vehicles, which could negatively impact the company's profits. Additionally, the gross margin erosion since the fourth quarter of 2022 could also negatively impact the company's financial performance, potentially leading to a decrease in the company's stock price.
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