Why Tesla Stock Is Edging Up Premarket Despite Steep US Price Cuts
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) shares edged up 0.23% in premarket trading despite the company's steep price cuts in the US. The company launched the refreshed Model 3, made in Giga Shanghai, and available for purchase in several countries. Tesla also reduced the prices of its Model S and X in the U.S. by 15.3% to 18.8%, and its full self-driving software from $15,000 to $12,000. Tesla investor Gary Black commented that the net margin impact of these price cuts is likely to be negligible when offset with the Model 3 price hike.
September 01, 2023 | 11:37 am
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NEUTRAL IMPACT
Tesla's stock edged up in premarket trading despite significant price cuts in the US. The launch of the refreshed Model 3 and the price reductions for Model S, X, and the full self-driving software are expected to have a negligible impact on the company's net margin.
The price cuts for Tesla's Model S, X, and the full self-driving software could potentially impact the company's margins. However, the launch of the refreshed Model 3 and the comment from Tesla investor Gary Black that the net margin impact of these price cuts is likely to be negligible when offset with the Model 3 price hike, suggest a neutral short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100