HomeIndustriesTesla Stock Loses 6% Following Price Cut Announcement

Tesla Stock Loses 6% Following Price Cut Announcement

Shares in electric vehicle maker Tesla fell by almost 7% in pre-market trading on Friday after the company announced its decision to slash the prices of two of its models in China. This comes as Tesla looks to combat the country’s declining demand figures.

While the company slashed the price of its China Model 3 by 13.5%, the price of its Model Y was reduced by 10%. The new retail prices for the Model 3 and the Model Y are $33,515 and $37,899 respectively.

Tesla’s 7% share decline is a new 52-week low for the automaker. Currently at its lowest level since August 2020, Tesla stocks have plummeted by over 40% in the last month.

According to the Future Fund managing partner Gary Black, the latest round of price cuts may lead to another round of earning cuts between 2023 and 2026.

“Tesla’s price cuts intensify the need for Tesla to accelerate the development of a $25K-$30K TSLA compact as a long-term China solution to combat BYD’s huge success in China’s under ¥200K segment,” Black commented.

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