Tesla stock comes under pressure after automaker announces price cuts | Tesla
Tesla stock came under pressure on Monday following the electric car maker's announcement. series of price cuts The company's CEO, Elon Musk, has a difficult financial year ahead of him.
Tesla shares fell as much as 5% in early trading, but rebounded slightly to 2.5% on lower prices around the world, including price cuts for the company's three flagship electric vehicles (EVs) and self-driving cars. The company was in the red. software.
Musk announced over the weekend that he had postponed his trip to the United States. IndiaA meeting with Prime Minister Narendra Modi is scheduled due to his “very heavy obligations” at the company.
The CEO will hold a key conference call with the investment community on Tuesday, when Tesla's latest quarterly numbers are expected to reveal its worst performance in seven years.
Tesla's results came amid slowing global demand for electric vehicles and pricing pressure from Chinese rivals. The company has already signaled weak first-quarter sales after revealing deliveries this month were lower than market expectations. Approximately 13% increase.
Tesla sought to boost EV demand by cutting prices on three of its five models in the United States late Friday, followed by continued price cuts around the world over the weekend, including in China, the Middle East, Africa and Europe.
It lowered the U.S. price of the Model Y, Tesla's most popular model and best-selling EV, as well as the older and more expensive Models X and S. These price cuts bring the Model Y's starting price down to $42,990 (£34,874). The company has also reduced the U.S. price of its fully autonomous driving assistance software from $12,000 to $8,000.
On Friday, Tesla All 3,878 Cybertrucks recalled Due to a defect in the gas pedal, it has not been shipped since its launch in late 2023. According to a filing with U.S. safety regulators, owners have reported that the pedal pads can become dislodged and get stuck in interior trim, causing the vehicle to accelerate unintentionally and increasing the risk of a crash.
Dan Ives, managing director at U.S. financial services firm Wedbush Securities, said investors' reaction to Monday's price drop showed they were concerned that “Tesla is in a panic.” It said the move reflected concerns that lower prices would hit profit margins. Profitability.
Tesla has already responded to the economic slowdown. Reduced over 10% of workforce worldwidewhich equates to at least 14,000 roles.
Musk is facing questions on Tuesday about China's growth, plans for a cheaper electric car known as the Model 2, and whether a reported switch to self-driving robotaxis will impact the project. Tesla stock has fallen more than 40% since the beginning of the year. Wedbush analysts wrote last week that Tuesday's conference call was a “critical moment” for Musk and Tesla.
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“There have been more tenuous periods in Tesla's story, going back to 2015, 2018, and 2020, but this time it's definitely a little different. For the first time, many longtime Tesla believers are giving up on the story and hanging up the white towel. Because he’s pitching,” Wedbush wrote in a note to investors.
After Reuters reported earlier this month that Tesla had halted development of the Model 2, Musk wrote on X that “Reuters is lying,'' without mentioning the inaccuracies.
Musk said this weekend that he would reschedule his visit to India to later this year. According to Reuters, he is scheduled to visit India on April 21 and 22 and is expected to announce investments of $2 billion to $3 billion in the country, with spending plans focused on building new factories. It is said that it was placed there.
Musk's now-postponed visit to Delhi was expected to include talks with executives from space industry startups. The billionaire is awaiting regulatory approval from the Indian government to start offering his Starlink satellite broadband service in India.
Summarize this content to 100 words Tesla stock came under pressure on Monday following the electric car maker's announcement. series of price cuts The company's CEO, Elon Musk, has a difficult financial year ahead of him.Tesla shares fell as much as 5% in early trading, but rebounded slightly to 2.5% on lower prices around the world, including price cuts for the company's three flagship electric vehicles (EVs) and self-driving cars. The company was in the red. software.Musk announced over the weekend that he had postponed his trip to the United States. IndiaA meeting with Prime Minister Narendra Modi is scheduled due to his “very heavy obligations” at the company.The CEO will hold a key conference call with the investment community on Tuesday, when Tesla's latest quarterly numbers are expected to reveal its worst performance in seven years.Tesla's results came amid slowing global demand for electric vehicles and pricing pressure from Chinese rivals. The company has already signaled weak first-quarter sales after revealing deliveries this month were lower than market expectations. Approximately 13% increase.Tesla sought to boost EV demand by cutting prices on three of its five models in the United States late Friday, followed by continued price cuts around the world over the weekend, including in China, the Middle East, Africa and Europe.It lowered the U.S. price of the Model Y, Tesla's most popular model and best-selling EV, as well as the older and more expensive Models X and S. These price cuts bring the Model Y's starting price down to $42,990 (£34,874). The company has also reduced the U.S. price of its fully autonomous driving assistance software from $12,000 to $8,000.On Friday, Tesla All 3,878 Cybertrucks recalled Due to a defect in the gas pedal, it has not been shipped since its launch in late 2023. According to a filing with U.S. safety regulators, owners have reported that the pedal pads can become dislodged and get stuck in interior trim, causing the vehicle to accelerate unintentionally and increasing the risk of a crash.Dan Ives, managing director at U.S. financial services firm Wedbush Securities, said investors' reaction to Monday's price drop showed they were concerned that “Tesla is in a panic.” It said the move reflected concerns that lower prices would hit profit margins. Profitability.Tesla has already responded to the economic slowdown. Reduced over 10% of workforce worldwidewhich equates to at least 14,000 roles.Musk is facing questions on Tuesday about China's growth, plans for a cheaper electric car known as the Model 2, and whether a reported switch to self-driving robotaxis will impact the project. Tesla stock has fallen more than 40% since the beginning of the year. Wedbush analysts wrote last week that Tuesday's conference call was a “critical moment” for Musk and Tesla.Skip past newsletter promotionssign up for today's businessGet ready for work – Get the business news and analysis you need every morningPrivacy Notice: Newsletters may include information about charities, online advertising and content funded by external organizations. For more information, see privacy policy. We use Google reCaptcha to protect our website and Google. privacy policy and terms of service Apply.After newsletter promotion”There have been more tenuous periods in Tesla's story, going back to 2015, 2018, and 2020, but this time it's definitely a little different. For the first time, many longtime Tesla believers are giving up on the story and hanging up the white towel. Because he’s pitching,” Wedbush wrote in a note to investors.After Reuters reported earlier this month that Tesla had halted development of the Model 2, Musk wrote on X that “Reuters is lying,'' without mentioning the inaccuracies.Musk said this weekend that he would reschedule his visit to India to later this year. According to Reuters, he is scheduled to visit India on April 21 and 22 and is expected to announce investments of $2 billion to $3 billion in the country, with spending plans focused on building new factories. It is said that it was placed there.Musk's now-postponed visit to Delhi was expected to include talks with executives from space industry startups. The billionaire is awaiting regulatory approval from the Indian government to start offering his Starlink satellite broadband service in India.
https://www.theguardian.com/technology/2024/apr/22/elon-musk-postpones-india-trip-tesla-results-narendra-modi Tesla stock comes under pressure after automaker announces price cuts | Tesla
