Tesla Stock Drops Over 3% Premarket Amid Price Cuts, Demand Woes
Tesla Inc. (NASDAQ: TSLA) shares fell sharply in premarket trading after the electric vehicle maker announced significant price cuts across its model lineup amid declining global sales. The company’s stock was reported at $142.49 at the time of writing, reflecting a premarket decrease of 4.56 points or about 3.10%.
Tesla Announces Significant Price Cuts After Dip in Vehicle Deliveries
Tesla’s global vehicle deliveries dropped for the first time in nearly four years, signaling a reduction in demand across all major markets. In response, the company reduced prices for three of its five models, including the Model Y, Model X, and Model S, in various markets while initially keeping the prices of the Model 3 and Cybertruck unchanged.
Significant price cuts were implemented in key markets such as the United States, China, and Germany. In the U.S., the Model Y price dropped to $42,990, the Model S to $72,990, and the Model X to $77,990. The company also reduced the cost of its “Full Self-Driving” software from $12,000 to $8,000. In China, the revamped Model 3 price was reduced by 14,000 yuan to 231,900 yuan, while in Germany, the Model 3 rear-wheel drive price was cut to €40,990 from €42,990.
Tesla Now Down 40% YTD
As of the time of writing, Tesla’s market cap stood at approximately $468.20 billion, with a notable decline in its stock price year-to-date and over the past year. The company’s comparative performance metrics show a year-to-date return of -40.82%, a 1-year return of -20.22%, a 3-year return of -40.37%, and a 5-year return of +707.20%.
In addition to the price cuts and stock performance concerns, Tesla announced a 10% global workforce reduction, affecting about 14,000 jobs. This move and the price reductions implemented in other countries across Europe, the Middle East, and Africa have raised questions about the company’s future growth prospects and profitability in an increasingly competitive electric vehicle market.
Do you think Tesla can recover, or will it continue to slide? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Back to 
