Tesla Stock Is Trading Lower: What's Going On?

Tesla Inc TSLA shares are hitting the brakes on Monday. There are several developments that could be driving the stock lower.

What To Know: Tesla announced another round of price cuts late last week. The EV maker reduced prices of its Model S and X vehicles by $5,000, marking the third round of price cuts this year. Tesla also cut the prices of its Model 3 by $1,000 and its Model Y by $2,000. 

The price cuts come after Tesla turned in delivery numbers last week that largely came in below analyst expectations. Tesla produced 440,808 vehicles in the first quarter, up from 439,701 last quarter and strong enough for a majority of analysts, but the company said it delivered just 422,875 vehicles, which was below most forecasts.

One analyst called the delivery numbers a "mild disappointment" and several others noted that more price cuts would be necessary in order to meet volume targets this year. The stock appears to be trading lower on continued downward momentum on the heels of the delivery update, coupled with continued price cuts.

From Last Week: Tesla Disappoints Analysts, Attention Shifts To Margins As EV Maker 'Undermines' Profitability

What Else Is Going On: CNBC reported that Tesla shares were facing selling pressure in early trading after the company announced that its next Megafactory will be in Shanghai. The factory is expected to be capable of producing 10,000 Megapacks per year.

Tesla CEO Elon Musk took to Twitter to note that Shanghai production will "supplement output" of the company's Megapack factory in California. 

Tesla is scheduled to report first-quarter financial results on April 19. The company is expected to turn in earnings of 86 cents per share on quarterly revenue of $23.59 billion, according to estimates from Benzinga Pro.

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TSLA Price Action: Tesla shares have a 52-week range of $101.81-$363.50.

The stock was down 3.05% at $179.42 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Tesla.