Will Tesla's Price Cuts Affect Its Stock Price In The Long Run?

ZINGER KEY POINTS

• Tesla cut prices on luxury electric cars to stay ahead and appeal to more customers.
• Transparent pricing shows Tesla's commitment to accessibility and competitiveness.
• Investors should monitor the stock price for a bear market.

Tesla Inc TSLA knows the competition in the electric car market is heating up, so to stay ahead of their rivals, they've chopped prices on both their Model S and Model X by between 4% to 9%.

This move makes these luxe rides more affordable for a broader range of customers - not just those with expensive taste! With this strategy, Tesla hopes to make some sweet sales rewards down the road.

Tesla's latest move is an exciting one! Customers can now make more informed decisions when it comes to buying electric cars, thanks to transparent price reductions that vary depending on the market and model.

This reveals a commitment from Tesla towards making their vehicles as accessible and competitively priced in the marketplace as possible.

Tesla's success in the electric vehicle market is being hampered by higher borrowing costs and a rapidly increasing number of competitors.

Purchasing one of their vehicles could become more difficult for those with lower credit ratings, while traditional automotive giants like Ford and GM are now facing off against new entrants such as Rivian and Lucid from America - not to mention BYD & Nio competing from across the globe!

Tesla aimed to demonstrate their strength and reliability with a lofty delivery target of 50% growth each year.

Unfortunately, external forces, namely supply issues and an unfriendly economy proved too much for the innovative automaker, leaving them short of expectations.

This shows that even industry giants must remain flexible in order to succeed; being able to adjust course quickly can mean all the difference between success and failure!

Despite the obstacles, Tesla CEO Elon Musk is still confidently optimistic about his company's success. He has slashed prices in order to make electric cars available for more people, so let's see how that may affect their stock price.

Tesla cruised to all-time highs from the depths of 2020s pandemic blues, but what goes up must eventually come down. Indeed it did, a decline of 75% in less than a year from the November 2021 all-time high at $414.

Price then found support at $100 and recently pushed back against gravity with an 84% rise since then. But could this be just another brief bull run before heading south?

Do we see the signs of an impending bear market? To get a full picture, investors should keep their eyes peeled for when this stock's price breaks above $200.

Until then, the focus should be on stocks that are currently climbing and outperforming the S&P 500 index. At least until we see if the price cuts have a positive effect on its stock price.

After the closing bell on Tuesday, March 7, the stock closed at $187,71, trading down by 3.15%