Tesla stock forecast: Will Tesla stock rise with Elon Musk’s Model 3 price drop?
At the start of 2019, the sales threshold set by the government for Tesla Model 3 customers of 200,000 vehicles was crossed, so the federal tax credit for buyers fell from $ 7,500 to $ 3,750 , halved.
In the meantime, Tesla has taken more than several steps to reduce the prices of its model cars, following the tax credit cuts as a necessary step to meet new market demands based on the tax credit changes.
Since the start of the year, the Tesla company has already cut the price of its Model 3 twice with the tax cut in early January 2019, meaning Tesla shares are more likely to feel the impact of these changes over the next period. .
Will Tesla’s share price rise as the price of the Model 3 drops?
Will Elon Musk’s price cuts in the Tesla Model 3 cause Tesla shares to rise in the market?
The price of all vehicles produced by Tesla on the head with Elon Musk was reduced by $ 2,000 in early 2019, again followed by a price reduction of an additional $ 1,100 in early February.
According to analysts looking at recent price changes and the newly reduced rates of federal tax credits, Tesla shares are considering hikes in the following year.
Prices for the Model 3, X, and S have been slashed, expecting sales of the Model 3 to increase as the company has doubled production, increasing auto production from 5,000 units per month to 10,000 units per month. the same period.
The S and X models are expected to have limited growth compared to the Model 3, further indicating that the net income margin will tend to increase during the year 2019 and 2020.
As for earnings per share, Tesla is expected to rise 27 times its current price in 2020.
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