Tesla: Hitting The Brakes


  • Tesla, Inc. kick-started the year with major price reductions and beat estimates in Q4 2022; we’re taking the cup half-empty approach and maintaining our sell rating on the stock.
  • We believe the 6-20% price slashes will likely boost demand but simultaneously take a bite out of Tesla’s margins in the near term.
  • We believe the price cuts on Model 3 and Model Y vehicles are a sign that Tesla’s back is against the wall amid the macroeconomic headwinds and intensifying competition.
  • We see more downside ahead for Tesla in the near term as we expect per-car margins to be pressured by the price cuts and increased cost of batteries.

Tesla Debuts Its New Crossover SUV Model, Tesla X

Justin Sullivan

We continue to be bearish on Tesla, Inc. (NASDAQ:TSLA) after the company dropped a bomb that it would slash prices up to 20% for its Model 3 and Model Y vehicles. We believe the price drop was a sign




BloombergNEF 2022





Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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