Was Tesla's $17B Monday Meltdown Justified? Bullish Vs. Bearish Analysts Evaluate Model Y Price Cut Impact
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) shares fell by 2.81% to close at $188.13, losing $17.33 billion in market capitalization, following a $1,000 price cut for the Model Y in the U.S. Analysts debated the impact, with Gary Black suggesting the market reaction was excessive compared to the estimated $65 million loss in profits for 2024. Conversely, Gordon Johnson provided a bearish view, calculating a $298 million impact from the price cut, justifying the stock's decline. The debate highlights differing perspectives on Tesla's short-term promotional strategy and its broader challenges.
February 13, 2024 | 9:22 am
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NEUTRAL IMPACT
Tesla's stock fell by 2.81%, erasing $17.33 billion in market value, after announcing a $1,000 price cut for the Model Y. Analysts are divided on the impact, with some viewing the market reaction as excessive and others justifying the decline based on potential profit losses.
The short-term impact on TSLA's stock is mixed, with the price cut potentially affecting profit margins but also possibly boosting sales volume. Analysts' divided opinions and the broader market context contribute to uncertainty, making the short-term price direction unclear.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100