TESLA INC. (NASDAQ:TSLA): Price cuts help Tesla sell more EVs, but smart buyers may start to hesitate buying without a discount

 


Tesla stock jumped 3.81% on Friday after CPCA said Tesla's China February deliveries were up 32% Y-O-Y. It seems like Tesla's aggressive price cutting strategies in January helped to sell more EVs.

More price cuts could be on the way as Tom Zhu, head of Tesla's global manufacturing, told investors at its March 1 Investor Day, “As long as you offer a product with value at an affordable price, you don’t have to worry about demand.” Last week, BYD announced its first price cut to compete with Tesla.

Be aware that Tesla just announced another round of price cuts with a 7% discount on new inventory vehicles in Europe, according to Teslarati. In our view, smart EV buyers may start to hesitate purchasing a new Tesla EV until they see a sale sign.

Elon Musk's "Master Plan 3" at its March 1 Investor Day was unable to push TSLA above the trading range, between the $182.33 support level and $207.25, a 50% pull-back from its all-time high. One should keep an eye on the $182.33 support level, though.

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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