EV leader Tesla saw its share price fall more than 3% Monday after it cut prices on many of its vehicles by as much as $2,000 over the weekend. It’s the second time the company’s slashed prices in the past two weeks, highlighting the company’s efforts to revive sales and improve profits.
Tesla CEO Elon Musk cut prices on the company’s vehicles by as much as $2,000 over the weekend, causing investors to respond negatively.
The company’s shares fell to $142.05 on Monday, a slide of 3.4%. The response from investors, which continued into afterhours trading, reveals they are looking for some answers from CEO Elon Musk as he looks to end the company’s sales decline in 2024.
Tesla sales were actually up slightly in the first quarter, but the EV maker’s sales are never just up “slightly.” Further complicating the problem Musk faces is the fact other sales of electric vehicles during Q1 were up double digits compared to the year ago period.
The cuts came on vehicles such as the Model 3 and Model Y in markets including the U.S., China and Germany, as Musk hoped to boost demand slowed by high interest rates.
0 Comments