Tesla Analyst Gary Black Sees Model Y, Model 3 Price Tweaks Coming Next Week Amid EV Credit Changes: 'Net Out To Be Rev Neutral'
Portfolio Pulse from Shanthi Rexaline
Gary Black, co-founder of Future Fund, anticipates changes to Tesla's U.S. price matrix for Model Y and Model 3 vehicles in response to the removal of EV credits. He predicts price increases for Model Y and decreases for Model 3 to maintain revenue neutrality and align with Tesla's historical pricing strategy. This comes as Tesla faces challenges with EV adoption due to economic conditions and consumer perceptions of high costs. Tesla's stock price has been affected by previous price cuts impacting margins.
December 20, 2023 | 9:08 am
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NEUTRAL IMPACT
Tesla may adjust Model Y and Model 3 prices, potentially impacting stock as it balances margins with competitive pricing amid changing EV credits.
The anticipated price adjustments by Tesla are a strategic response to the removal of EV credits and aim to maintain revenue neutrality. While this may not have a significant impact on the company's overall revenue, it reflects Tesla's ongoing efforts to balance price competitiveness with profitability. The news could lead to neutral investor sentiment in the short term as the market assesses the effectiveness of Tesla's pricing strategy in sustaining demand without eroding margins.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100