Tesla tumbles after issuing another round of new price cuts in advance of reporting earnings results

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• Tesla shares dropped Wednesday after the company reduced prices for the 6th time this year.
• Amongst the reductions, the Model Y All-Wheel Drive has been reduced by $3,000 and is now $46,990.
• Tesla will release its Q1 earnings on Wednesday. Revenue is expected to increase from last year, but to decline from Q4.

Tesla shares dropped Wednesday after the company reduced prices on its electric vehicles. This was the sixth reduction this year, just before the release of its latest quarterly earnings report.

Tesla has cut the prices of its Model 3 in the US to attract more buyers on a market that is becoming increasingly competitive. The company's website displayed a $3,000 reduction in the Model Y All-Wheel Drive price to $46,990.

Tesla shares fell 2.9% during premarket trading, reducing the 50% surge this year.

Model Y Long Range was reduced from $52,990 to $49,990. The Performance model dropped from $56,990 to $53,990. Tesla's Model 3 Standard Range Rear-Wheel Drive is now priced below $40,000 at $39990 instead of $41,990.

New guidance issued by the US Treasury Department this week reduced the federal tax credit for the Standard Range RWD to $3,750, while other Tesla models are still eligible for $7,500.

Tesla investors will be watching the margins of the company after this year's price reductions on Wednesday. According to FactSet's poll of analysts, the company is expected post revenues of $23.73 for the first three months. This would be a 26% rise from the same time period last year, but a decrease from $24.32billion in the fourth quarter 2022.

FactSet's per-share earnings forecast is $0.85, compared to $1.07 per share one year ago.

In 2023, the stock has recovered from a brutal 65% drop last year. It is now among the worst performing shares in the S&P 500 for 2022.

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By: insider@insider.com (Carla Mozée)
Title: Tesla falls after issuing a fresh round of price cuts ahead of reporting earnings results
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-price-cuts-model-3-y-earnings-evs-musk-2023-4
Published Date: Wed, 19 Apr 2023 13:54:03 +0000

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