Tesla’s stock price fell 6%. Tesla’s first-quarter delivery report had led some investors to worry that the company would need to cut prices further to drive sales, eroding profit margins.
Tesla
After cutting prices by as much as 20% in January, Tesla delivered a record 422,875 vehicles in the first quarter, but that was only 4% higher than the previous quarter. Several analysts said the figures raised questions. There are concerns over whether Tesla will need to cut prices further this year in order to meet CEO Elon Musk’s goal of delivering 2 million vehicles by 2023.
Tesla shares fell 6.12%
“Many investors believe that Tesla’s recent price cuts reflect its structural cost advantage, which could enable the company to buy more,” Bernstein analyst Toni Sacconaghi wrote in a note after the report’s release. Let it put pressure on competitors, get huge volumes, and dominate the EV market. We maintain that price cuts have and will hurt industry profitability (including Tesla), but incumbents have deep pockets and are unlikely to budge .”
As of Monday’s close, Tesla’s stock price fell by US$12.69 to close at US$194.77, a drop of 6.12%. The market value evaporated by US$40.1 billion (about 275.8 billion yuan), leaving US$616.3 billion.
