TESLA INC. (NASDAQ:TSLA): Investors Will Find Out the Impact of Tesla's Price Cut on Sales and Margins on Jan 25

 


Tesla stock plunged on Fri to an intra-day low of $115.60 after the company said it cut prices between 6% and 19% in the US and Europe, per CNBC. The stock bounced back from the low along with the broader market to close at $122.40, down 0.94% for the day.

In our view, the stock could be trading sideways, between $124.35 and $100, until the Tesla Q4 earnings report on Jan 25, as the impact on sales and margins is uncertain.

Here's what Wedbush’s Dan Ives wrote on Twitter, “While this clearly will have a negative impact on margins, we believe this was the right move at the right time to spur further EV [electric vehicle] demand,”. Let's see if he's right as we don't know why Tesla demand is dropping!

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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