Tesla shares drop after deliveries report raises investor concern that more price cuts are coming
Publishing timestamp: 2023-04-03 20:53:01
Summary
Tesla's shares fell 6% after the company reported first-quarter deliveries of 422,875 electric vehicles and production of 440,808 cars, leading some investors to worry that more price cuts will be needed to drive sales, eating into margins. Analysts are concerned that increased competition will force the automaker to keep lowering prices if it wants to attract buyers as new EVs continue to hit the market, which could undermine industry profitability. Tesla's first-quarter deliveries fell shy of Wall Street expectations, and achieving the company's goal of 50% annual growth on average in production volume and sales over a multiyear horizon will likely require further price cuts, according to some analysts.
Sentiment: NEGATIVE
Tickers: TSLA,
Keywords: autos, venture capital, united states, business news, technology, tesla inc,