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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NEGATIVE IMPACT
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.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100