Tesla cuts price to its Top-Selling Model
Tesla Inc. has slashed the starting price of its top-selling vehicle by almost a third in just over three months!
making discounts that had already divided analysts all the more unprecedented. Now all eyes will be on Tesla’s margins when the electric-vehicle maker reports first-quarter results after the closing bell.
Tweet on Tesla stock reaction
@Tesla slashed the starting price of its top-selling vehicle by almost a third in just over three months,
The company's stock is up nearly 50% in 2023 through yesterday's close, and ahead 11% in April.#tesla #stocks #ev pic.twitter.com/gwZjv2iLCx
— The_Journalbiz (@the_journalbiz) April 19, 2023
Factset chart on Tesla stock
The company’s stock was recently down about 1% in afternoon trading. It was up nearly 50% in 2023 through yesterday’s close, and ahead 11% in April.
After waves of price cuts in the U.S. and abroad to stoke demand, Wall Street wants to know how much Tesla’s profitability has been dented. Here’s what to look for when the numbers drop:
Operating margin is expected to come in around 12.1%, according to analysts surveyed by FactSet, down from 19.2% in the year-earlier period.
Revenue is likely to come in around $23.6 billion, per Wall Street, below record sales in the prior quarter but up more than 25% from last year’s first-quarter figure.
Profit is expected to come in at $2.57 billion, down around 22% from the year-earlier period, in part reflecting the price cuts.
At $46,990, the cheapest available Model Y sport utility vehicle costs 29% less than it did in mid-January. Tesla’s other high-volume car, the Model 3 sedan, can now be had for less than $40,000 for the first time in years.
Here’s a recap of major changes Tesla has made to prices this year:
Jan. 6: Marked down the Model 3 and Y in China
Jan. 12: Cut prices across the lineup in US and Europe
March 5: Discounted the Model S and X in the US
April 6: Makes another lineup-wide cut in the US
April 14: Markdowns in Europe and Singapore
April 18: Cuts prices of the Model 3 and Y in the US
