Tesla Slashes Prices Amidst A 13% Decline In Stock Value: Analyzing The Strategic Move Amidst August's Market Fluctuations

• Tesla has introduced a new pricing strategy, reducing the prices of its Model S and Model X vehicles by $10,000 to attract more consumers.
• Tesla's stock price saw a 13% decrease in August, after a notable high of $299.29 in July.
• Currently, the stock's value has dropped by 22% from its peak, with the year-to-date gain now standing at 95%.

Tesla Inc TSLA, one of the leading electric car manufacturers, is making its Model S and Model X vehicles more accessible to consumers.

The company has unveiled a new pricing strategy that brings down the prices of these models by a significant $10,000.

Tesla aims to increase its market share and boost vehicle sales through this move. Despite the potential impact on profit margins, the primary objective is to reinvigorate interest in Tesla cars, especially with the highly anticipated mass production of the Cybertruck on the horizon.

Their share price experienced a significant 13% decrease in August, following a promising performance in July, where it reached an impressive high of $299.29.

This near-breaking of the $300 resistance level, which is a key psychological marker for investors, marked a remarkable 153% increase in the stock's value for the year.

Unfortunately, the initial excitement didn't last too long. Following reaching its highest point, the momentum began to fade as July turned into August.

Currently, there has been a decline of 22% from the peak, and the year-to-date gain has been adjusted to 95%.

Investors are anxiously asking what's next. If the bearish moves continue, analysts and investors will closely monitor specific key levels.

First, there's the February 2023 resistance-turned-support level at $217.65. It could act as a buffer and prevent further price drops.

However, if the stock surpasses this level, the next crucial support is the highly anticipated $200 mark. This psychological support level may be the last line of defense against further declines.

Despite the current negative outlook, there is a ray of hope. Tesla's smart decision to lower vehicle prices could potentially lead to increased sales, resulting in a turn-around for the stock and putting it on a growth path once again.

After the closing bell on Tuesday, August 15, the stock closed at $232.96, trading down by 2.84%.