Tesla has reduced the prices of its two most expensive models, raising concerns about fading interest in its cars and whether the company can generate enough cash to pay all the bills. On Monday, Tesla cut $3,000 from the price of the Model S sedan and $2,000 from the Model X SUV. The company said in a statement that it periodically adjusts prices and available options like other car companies.
"Demand is at the heart of the problem," analysts led by Adam Jonas said in a note. Jonas lowered his "bear case" for Tesla shares from a previous estimate of $97, which assumes Tesla misses its current sales forecast in China by about half, and kept a price target of $230. The stock fell 2.6% to $200 in pre-market trading.
Tesla's stock and bonds tumbled on Monday as investors worried about the automaker's cash burn and problems with an Autopilot system that CEO Elon Musk has held out as key to the electric car maker's future. Tesla's stock fell 3.8% to $203.03, bringing its loss to 11% since the National Transportation Safety Board said on Thursday that the Autopilot system was engaged during a fatal collision of a Model 3 on March 1, in at least the third deadly U.S. crash reported involving the driver-assistance system. Investors were also spooked after Musk told employees on Thursday he would increase cost-cutting and that $2.7 billion in recently raised capital would give Tesla just 10 months to break...
In a note Sunday, Wedbush analyst Dan Ives described the electric-car maker's predicament as a "code red situation" and cut his price target on the stock to $230 from $275. Ives slashed his target from $365 just last month. Tesla shares fell as much as 7.5% to $195.25 and were trading at $200.68 as
In a note Sunday, Wedbush analyst Dan Ives described the electric-car maker's predicament as a "code-red situation" and cut his price target on the stock to $230 from $275. Ives slashed his target from $365 just last month. Tesla shares fell 3.8% in early trading in New York Monday, poised to reach