Tesla cut prices to fight a price war. Analyst Ives is optimistic about the move and maintains Tesla's "outperform" rating.

(Bloomberg)

[Financial Channel/Comprehensive Report] Tesla has recently launched a series of big price cuts around the world. Wedbush Securities (Wedbush Securities) analyst Dan Ives (Dan Ives), who is long-term bullish on Tesla, believes that as electric vehicles Market competition is intensifying, and Tesla is becoming more aggressive. Although Wall Street is pessimistic about Tesla's price cuts, he believes that this is Tesla's right strategic move at the right time.

Ives maintained his "outperform" rating on Tesla, with a 12-month target price of $175. Tesla closed at $122.40 on Friday (13th), a slight drop of 0.94%.

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Ives said in a report on Friday that demand for electric vehicles has been weakening. Although the price cut will initially be regarded as a negative by Wall Street, it is Tesla's right strategic move at the right time.

Ives said that Tesla has established a considerable production scale on a global scale, and it also has the flexibility of profit margins that can absorb price cuts. The new government tax credit policy will further promote Tesla's development.

Tesla has cut prices in the U.S., Europe and China in recent months, and cut its U.S. price again earlier this month.

The price cuts of Model 3 and Model Y in the United States range from 6% to 20%, which does not include the $7,500 federal tax credit that took effect in early January.

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