Tesla Bear Wonders If Price Hike Warnings Are Signs Of Looming Production Slump: 'Simply An Also-Ran Auto Company After All?'

Long-time Tesla Inc TSLA bear and GLJ Research CEO Gordon Johnson on Friday wondered if the announcements of upcoming price hikes in the U.S. and Europe on Tesla vehicles imply production volumes will be slashed like in China.

What Happened: “Is $TSLA raising prices (in the US/China/etc.) to offset planned lower production – i.e., which means higher COGS/unit as fixed costs are absorbed over a smaller base?” Johnson posed on X, formerly Twitter, tagging company CEO Elon Musk. “Stated differently, is $TSLA simply an also-ran auto company after all?”

Price Hike Warnings: Earlier this month, it was reported that Tesla would increase the prices of China-produced Model Y vehicles starting in April by 5,000 yuan ($694). The move followed similar warnings of impending price hikes issued by the company in the U.S. and Europe.

In March, the company said it would increase the price of its best-selling SUV in several countries across Europe on March 22 by about 2000 euros ($2163). In the U.S., the company is looking to increase the starting price on all its Model Y variants by $1000 starting April 1.

Production Cut In China: Last week, Bloomberg reported that the company has instructed employees at its gigafactory in Shanghai to reduce production of Model Y and Model 3 EVs.

Unlike Johnson who deems the price hike warnings and production cuts to be interconnected, Tesla bull Ross Gerber deems it to be a China-specific action from the company.

“No way to spin-cutting production in China. The Chinese recession is definitely having an effect on several companies. Tesla is one of them,” Gerber, the president and CEO of Gerber Kawasaki Wealth and Investment Management, said.

Price Action: Tesla shares closed down 1.15% on Friday at $170.83. The stock has dipped 31.23% year-to-date, according to Benzinga Pro.

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