Tesla slashes $2,000 on all vehicles’ price tag, shares sour

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Tesla slashes $2,000 on all vehicles’ price tag, shares sour

Later on, Wednesday, the 2nd of January, 2018, the Tesla Inc. announced that they would be cutting the prices of all of their vehicles by a significant margin, the news came shortly after the electric carmaker failed to deliver all of its mass-market model 3 Sedan, ordered before October 15th.

However, later on December, 2018, the Tesla head, Elon Musk had declared that they would cover up the $7,500 price cut for any delayed deliveries. This recent price cut of $2,000 on all models of Tesla electric cars triggered several questions, as the company had planned to go private soon and unsurprisingly, the price cut had met with a large-scale slide in the share price.

A Bank of America analyst, John Murphy commented in a client note, “In our view, this move could suggest that what many bulls assume to be a substantial backlog ... for Tesla may be less robust. ” The news of price cut on all of the Tesla models, caught up many investors by surprise and it dragged the share price 6.8 percent downwards.

While this report is being prepared, the Tesla Inc. shares were residing closer to $310.08, after experiencing a fall of as much as 10 percent during session.