Fund Manager Advises Tesla 'Try A Different Dance Move' After EV Maker's Obsession With Price Cuts Doesn't Yield Results
Portfolio Pulse from Shanthi Rexaline
Tesla's strategy of price cuts has significantly reduced its earnings power, with a fund manager suggesting the company explore new marketing strategies. Tesla's shares have been underperforming, and the price cuts have not led to increased sales volumes.
May 23, 2024 | 7:19 am
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NEGATIVE IMPACT
Tesla's price cuts over the past 18 months have reduced its 2024 earnings power by 48%, from $4.82 to $2.53. The strategy has not led to increased sales volumes, and shares have been underperforming.
The news highlights significant internal risks for Tesla, including reduced earnings power and ineffective price cuts. This is likely to negatively impact investor sentiment and short-term stock performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100