Tesla Stock: 2024 EPS Estimates Keep Coming Down. The EV Giant Is Now Hiking Prices.

Tesla (TSLA) announced over the weekend it will increase U.S. Model Y prices on April 1 while also hiking Model Y prices in Europe on March 22. Meanwhile, the global EV giant is also currently offering fresh inventory discounts for Model Y trims in China. Tesla stock rebounded early Monday.

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The company will increase the price of all Model Y trims in the U.S. by $1,000 next month while Model Y prices in Europe will go up by around $2,100 on Friday. In China, Tesla is offering discounts on inventory Model Y vehicles of between $1,000-$1,500.

The pricing move comes after Tesla, to maintain sales momentum, has aggressively cut vehicle prices and offered discounts for more than a year. As a result, auto gross margins, which peaked at 30% in Q4 2021 amid industry chip shortages, have plunged well below 20%.

Analysts argue the strategy is not helping demand and is hurting the company. Tesla observers report that inventory is currently quite high and that the EV giant’s price hikes do not indicate rising demand.

Troy Teslike, a respected source of delivery estimates and Tesla data tracking among retail Tesla investors, wrote on X, formerly Twitter, Saturday that the U.S. price increase is “not because of too much demand.”

“Base on the latest data, inventory is currently high,” Teslike posted. “Tesla’s message is to buy now before the increase.”

Tesla Is Plunging, But It’s Not Getting Cheaper. Here’s Why.

With the first quarter ending in just two weeks, Tesla appears to be heading for a delivery miss. Wall Street consensus currently still has Q1 deliveries of 487,000 units, according to FactSet. However, many analysts have cut predictions in recent days.

Tesla is expected to report Q1 deliveries in early April.

Tesla Stock Performance

TSLA shares surged 2.7% to 167.81 during market action Monday. Last week, Tesla stock dropped 6.7% to 163.57. On Thursday, Tesla stock fell 4.1% to 162.50, hitting new 2024 lows and levels not seen since May 2023. TSLA is down 19% in March.

Wells Fargo downgraded Tesla to underweight, from equal weight, last week with a price…

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