Tuesday, 25 June 2024

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Tesla (NASDAQ:TSLA) Slashes Prices of Model Y in the U.S. – TipRanks Financial Blog

Tesla (NASDAQ:TSLA) Slashes Prices of Model Y in the U.S. – TipRanks Financial Blog

EV major Tesla (NASDAQ:TSLA) has temporarily slashed the prices of some of its Model Y cars in the U.S. until February 29. Tesla has lowered prices for its Model Y rear-wheel drive and Model Y long-range by $1,000 each to $42,990 and $47,990 respectively. This indicates a discount of 2.3% and 2% from previous prices.

The company has kept the prices of its Model Y Performance variant and other models unchanged. The EV giant stated through a notice on its website that these discounts would cease to be in place after February 29 and that the price would increase by $1,000 or more from March 1.

The price discounts in the U.S. come less than a month after Tesla slashed prices of its Model Y cars in Germany. Its car production at its Berlin Gigafactory was suspended due to supply chain issues after attacks in the Red Sea caused shipping disruptions.

These price cuts could further pressure Tesla’s margins amid rising competition and cooling demand for its vehicles.

U.S. Court Orders Musk to Testify in SEC Probe

Meanwhile, in a setback for Tesla’s founder and CEO, Elon Musk, a U.S. court has ordered that the CEO testify in an inquiry by the Securities and Exchange Commission (SEC) regarding his $44 billion acquisition of Twitter in 2022.

The SEC is investigating whether a securities fraud was committed in 2022 after Musk built up his stake in Twitter ahead of his leveraged buyout of the company. According to a CNBC report, in the order dated February 10, the federal magistrate judge Laurel Beeler affirmed the SEC’s subpoena as valid, rejecting claims of harassment by Musk’s legal team.

What is the Future Price of Tesla Stock?

Analysts remain sidelined about TSLA stock with a Hold consensus rating based on 12 Buys, 17 Holds, and five Sells. TSLA has dropped by more than 20% year-to-date and the average TSLA price target of $220.26 implies an upside potential of 13.8% at current levels.

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