Tesla Shares Edge Higher After Company Announces Price Cuts For Evs

The share prices for Tesla, the largest electric vehicle manufacturing company have moved significantly in the upward direction. The company’s shares moved higher after it shared an update related to its vehicles.

Tesla Announces Price Cuts

It was during the pre-market trading session when the share prices for Tesla moved higher.

Tesla officials recently made an announcement pertaining to the price cuts of their vehicles. The carmaker announced that they are introducing price cuts for vehicles based in the United States.

The announcement is no less than another major surprise for the customers as well as the investors. The company has been announcing price cuts and adjustments for its vehicles ever since the year 2023 began.

According to statistics, this is the fifth time in the year 2023 that the company has announced adjustments for EV prices.

Tesla is performing well Earnings-Wise

Tesla has been delivering a promising performance despite the negative reviews and criticism from market observers.

Tesla recorded record deliveries even in the last quarter of 2022. The company is eager to achieve higher goals in the year 2023 and is making the necessary adjustments and preparations to make it happen.

The fourth quarter earnings that the company posted were stronger than expected. It was in late January when the officials at Tesla shared their earnings.

The company not only overachieved the earnings but did the same in terms of revenue. They even revealed that despite the hurdles and obstacles, their demand is constantly rising.

Surprisingly, the demand has continued rising not only for local production but also for international production.

Production has Increased in China

Even in the first quarter of 2023, Tesla has reported that their production levels have continued rising. The demand for EVs has risen in China, which is why they have produced more than 77,000 vehicles from January to March.

In the previous quarter, however, their production for the number was somewhere around 64,000. It shows that the demand is rising and therefore, they have to increase the workforce at their Shanghai production plant.

The company is also set to expand in other parts of the world recently announcing its potential expansion to Thailand. The company now wants to open up a production facility in a particular country.

Latest Price Reductions

Since the beginning of 2023, Tesla has been doing many things the right way. This is what has helped the company witness a great recovery in its share prices since the start of 2023.

In the fifth adjustment, Tesla has announced reductions for three premium models. These models include Model S AWD, Model X Plaid, and Model X.

For Model S AWD, they have reduced the costs by 5%, for Model X Plaid and the costs have been reduced by 9%. As for Model X, the costs have been reduced by 9% as well.

Elon Musk is Helping Consumers

Just recently, Elon Musk delivered a speech at the investor day of Tesla. During the presentation that was held last week in Austin, TX, Elon Musk talked about the desire of consumers to buy Tesla vehicles.

He revealed that the urge customers are constantly rising of wanting to acquire the Tesla models. They want to drive them but they are unable to.

The reason why most customers are not able to buy Tesla is that they cannot buy it, which is a limiting factor. As they have continued reducing and adjusting the prices, they are making things favorable for the customers.

Now, people with fewer budgets and buying money can buy the Tesla models. They have continued adjusting the vehicle prices to make them more affordable for the customers.

After the recent announcement, the company’s share prices have surged 0.41%. At the time of writing, Tesla’s shares are trading at a high of $198.60 per share.