Drudge Retort: The Other Side of the News
Friday, January 13, 2023

Tesla Inc (TSLA.O) has slashed prices globally on its electric vehicles by as much as 20%, extending an aggressive discounting effort and challenging rivals after missing Wall Street delivery estimates for 2022.



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The move marks a reversal from the automaker's strategy over the last two years when new vehicle orders exceeded supply. It comes after CEO Elon Musk warned that the prospect of recession and higher interest rates meant it could lower prices to sustain growth at the expense of profit.


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Another view...

Elon Musk's Tesla price cut comes as favorability falls among the public

...Six months after CEO Elon Musk told investors that Tesla "does not have a demand problem" " which, to be fair, might've been true at the time " Tesla now appears to have a demand problem.

Driving the news: The company overnight "dramatically" cut prices of its Model 3 and Model Y in the U.S. by a weighted average of about $10,000, or 16%, according to Evercore ISI analysts.

Why it matters: Tesla has experienced a sharp drop in its stock price over the last several months as Musk's Twitter management led to criticism of his leadership " and as the company faces rising competition with no new vehicles ready to go.

- - - Tesla's "net favorability" rating among consumers has fallen from 28.1% in March 2022 " the month before Musk offered to buy Twitter " to 12.8% in January 2023, according to Morning Consult Brand Intelligence survey data supplied to Axios....

#1 | Posted by LampLighter at 2023-01-13 02:06 PM | Reply

Odd way of saying more and more people don't want to drive a MAGA hat on wheels

#2 | Posted by qcp at 2023-01-13 02:53 PM | Reply | Newsworthy 1

I went to an EV test drive event this summer. Several dealers were present, Tesla was represented by a couple of owners, no corporate representation. Generally, I want a vehicle to go from point A to point B sans bells and whistles. Best I could tell, Tesla would have to drop prices by 40-45K to be close to the Volt I was looking at.
After the TWITTER fiasco; to get me in a Tesla it would have to be cheaper than the competition.

#3 | Posted by mattm at 2023-01-13 04:44 PM | Reply

Tesla seems like a brand that diluted its value in a way that was completely self-inflicted and entirely avoidable.

Then again, I suppose Tesla inflated its value the same way.

#4 | Posted by snoofy at 2023-01-13 04:47 PM | Reply

@#4 ... Tesla seems like a brand that diluted its value in a way that was completely self-inflicted and entirely avoidable. ...

In a way, yes.

But from the stock value point of view, it gets a bit more difficult to judge.

For example...

Tesla Market Value Debate Rages On: Is It a Tech or Car Company?

...Wall Street is revisiting a key question when it comes to figuring out how much Tesla Inc. is really worth: Is it a shaky automaker or a high-growth technology company?...

"Shaky automaker? Woof, that's gonna leave a mark.

But really, Tesla stock currently seems to be evaluated as a tech stock, with the higher price-earnings ratio that tech stocks enjoy.

(ditto for Twitter, btw. but was Twitter a tech stock or a media company?)

imo, Tesla is a car company. Their business is cars. The stock price should be evaluated as a car company, not as a tech stock.

#5 | Posted by LampLighter at 2023-01-13 07:36 PM | Reply

Discounts? After seeing video of the Tesla slamming on its brakes on a highway, they'd have to pay me to buy one.

#6 | Posted by censored at 2023-01-13 11:11 PM | Reply

Tesla shows desperation as market share plummets.

#7 | Posted by morris at 2023-01-15 05:09 PM | Reply

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