Tesla stock sinks on fresh Model 3 and Model Y price cuts
So much for that Tesla stock (TSLA) bounce.
Shares of the EV maker fell more than 4% in pre-market trading on Friday amid fresh U.S. price cuts for the Model 3 and Model Y. The stock had rallied about 9.5% in the past five sessions as traders speculated a bottom was forming after a 65% decline in 2022.
Tesla cut the Model 3 base version by $3,000 to $43,990, according to an update on its website. The Model 3 Performance variant saw a price cut of $9,000 to $53,990.
As for the Model Y Long Range, the price was dropped $13,000 to $52,990. The Performance model was cut to $56,990, about $13,000 cheaper than the prior price.
The U.S. price chops come hot on the heels of recent cuts in China, Japan, and South Korea as Tesla looks to reignite demand against growing competitive threats.
Citi analyst Itay Michaeli, meanwhile, took a more cautious stance on the company's upcoming earnings.
In a new note, Michaeli slashed his 2023 deliveries estimate to 40% growth from 53% previously. The analyst cut his price target on Tesla to $140 from $176 but maintained a neutral rating.
"We are constructive on Tesla’s strong global premium EV position and particularly the company’s improved execution in recent years," Michaeli stated. "However, we are more skeptical on the company’s full-self driving/autonomous vehicle (AV) approach, which we view as a critical input to the overall risk/reward assessment given our positive stance on the AV opportunity as a whole."
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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