Tesla stocks have slumped down after it was announced that the company has cut out prices for Model 3, Model S and Model X. While the rest of the stock market is on the rise, the investigators have taken it as a negative sign of demand. Even though the Wedbush analysis has predicted a price target increase, the stocks at Tesla have fallen down.
It is reported that Elon Musk’s company Tesla has reduced the prices for Model 3, Model S and Model X, whereas the upcoming Model Y is at the same price. The reason Tesla has slashed thousands of dollars on their Model 3, Model S and Model X cars is the ongoing COVID-19 pandemic which has reduced the demands for Tesla cars and most of the other vehicles.
Tesla Stock down over Less Demand for Model 3, Model S and Model X Cars in COVID-19 Pandemic
Tesla factories may not be shut down over the Coronavirus pandemic, but the demands for Tesla Model 3, Model S and Model X will surely be shut down. There is no demand in the market for automobiles as everyone is forced to stay at their homes and traveling around is almost prohibited.
If you really think Tesla price cut is because of the demand issue, I highly recommend you to revisit the company mission statement again & again until fully understand the meaning.
— Vincent (@vincent13031925) May 29, 2020
Elon Musk and his automaker company Tesla seems to have a lot of other problems that have affected its stock prices. There is a lawsuit filed over reopening the Fremont factory, production has been halted in China factories and the Tesla stock has also downgraded over the negative oil prices. In conclusion, it can be said that Tesla stock prices have fallen down over less demand for vehicles due to the COVID-19 outbreak.
Tesla Cuts Price for Model 3, Model S and Model X
Tesla Model 3 price has been slashed by $2,000 for the powertrain options and now it starts at $37,990 for the Standard Range Plus, which was previously started at $39,990. Whereas the base price of Tesla Model S has been cut by $5,000 and now the Long Range Plus model costs $74,990 and the most expensive model costs $94,990.
Even the Tesla Model X has received a price cut of $5,000 and now the starting price of this series is less than $80,000. Tesla Model Y didn’t register a price cut as the car is yet not available in the market and also the profit margin on Model Y is very less compared to other Tesla cars.