Tesla (NASDAQ: TSLA) stock was down in pre-market trading on Friday even as the EV stocks giant slashed its prices by a maximum of 20% across the U.S. and European markets after reducing its prices across Asia last week.
According to a Reuters report, in the U.S., the discounts ranged between 6% and 20% on TSLA’s Model 3 sedan and Model Y crossover SUV. These discounts will be before a federal tax credit of up to $7,500 that came into effect at the start of this year.
Tesla also lowered prices for its Model X luxury crossover SUV and Model S sedan in the United States. In Germany, it slashed prices of its Model 3 and Model Y in the range of around 1% to 17%. Prices were also reduced in Austria, Switzerland, and France.
This move comes after Tesla’s CEO, Elon Musk stated in a Twitter Spaces chat back in December that he sees a “serious recession” ahead and demand could soften for big-ticket items.
Even Wall Street analysts had also been disappointed by TSLA’s Q4 vehicle delivery numbers as they fell short of estimates.
At the end of 2021, the U.S. and China accounted for 75% of TSLA’s car sales globally. With these price cuts, it remains to be seen to what extent demand recovers for TSLA’s EVs.
Analysts are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 20 Buys, nine Holds and two Sells.
