Tesla Stock Set To Open At Fresh 15-Month Lows: What's Draining EV Maker's Charge?
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) is facing a sell-off, with its stock set to open at 15-month lows due to recent price cuts across its U.S. and international electric-vehicle lineups, excluding the refreshed Model 3 and Cybertruck. The price reduction strategy, including a significant cut in its full self-driving software price, is seen as margin-eroding ahead of its Q1 earnings report. Analysts, including Future Fund's Gary Black, anticipate these moves could lead to a $2.7 billion annual revenue loss and a 60 cents per share earnings reduction, prompting a negative outlook and potential further price target adjustments by Wall Street.
April 22, 2024 | 11:24 am
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Tesla's recent price cuts across its EV lineup and self-driving software, excluding the refreshed Model 3 and Cybertruck, have led to a sharp sell-off, with the stock set to open at 15-month lows. This strategy is viewed negatively by analysts, impacting the stock's short-term outlook, especially ahead of its Q1 earnings report.
The direct mention of Tesla's premarket performance and the negative sentiment surrounding its recent price cuts, combined with the anticipation of a disappointing Q1 earnings report, suggest a bearish short-term outlook for TSLA stock. The analysis is based on the article's focus on these price cuts and their potential impact on Tesla's financials and stock price.
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IMPORTANCE 90
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