Tesla Shares Slide Further After Price Cuts In Major Markets Over The Weekend
ForbesMay 02
Tesla Cutting Prices of Several Models
Image copyright: Smith Collection/Gado /Contributor/Archive Photos via Getty Images
The Facts
Elon Musk-owned electric vehicle (EV) maker Tesla on Saturday announced it's cutting around a third off the price of its "Full Self Driving" system from $12K to $8K in the latest sign the company is facing an uphill battle to thrive.
The cut in price of the "Full Self Driving" system — which contrary to its name doesn't drive the car itself — comes a day after Tesla announced it was cutting $2K off the price of three of its US models — the Model X, Model Y and Model S.
The Spin
Narrative A
The sky seems to be falling for what was once Musk's business crown jewel. The price cuts, layoffs, and recalls have continued Tesla's dismal slide, during which its value has decreased and sales have dropped. With a bruising earnings report expected out this week, Musk can't seem to figure out how to stop this tailspin.
Narrative B
It's been a tough week for Tesla — and the week ahead may be rough too — but there are signs of hope because of a possible increase in demand for an updated Model 3 and the potential Musk will soon announce a lower-priced Model 2, which could be extremely popular. Tesla is trying to price its EVs to better fit US budgets, and it's getting there.