Tesla Has Cut the Price of All Vehicles in the US, Shares Dropped

If you were planning to purchase a Tesla vehicle sometime sooner, you should not hurry. According to the latest reports, Tesla has reduced the price of all vehicles in the United States market. While this may sound cooler for the consumer community, investors of the company were taken aback and the share value dropped 7% in total. Several questions are being asked about this move.

Analysts, for instance, are worried whether such a move means the decreased demand for Tesla vehicles in the market. For years, decreasing the price has been a method to battle lower demand. It should be noted that the company has reduced $2000 from all the Tesla models. Compared to the actual price these models were selling, the price-cut is quite evident. Analysts have different opinions on the move for sure.

One contention is that the company has reduced the price because it was not able to fulfill the proper delivery of Tesla Model 3. Also, the lowering of the green tax credits would have compelled the automaker to take a decision like this. The ultimate question is whether these moves would be affecting the overall profitability of Tesla, which has not published the annual profit so far.

Tesla, as a company, has not been the most profitable one in the country. During its 15-year existence in the market, only three quarters were found profitable for the firm. Last year, Elon Musk had managed to keep the company profitable in the third quarter, even though Tesla was at loss for the first nine months. Musk is still confident that the company would make it to the top.

Tesla has also managed to upset many customers in the period. First of all, the company has not been really punctual when it comes to delivering the products. This trend of varying deadlines has built a bad reputation for Tesla products in general.

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