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Tesla has once again reduced its vehicle prices and introduced special offers aimed at enticing buyers following a report of disappointing vehicle deliveries in the first quarter of 2024. This news comes alongside adjustments by analysts to Tesla's full year earnings forecast leading to a rise in
Tesla shares. Now, in a notable move, the electric vehicle behemoth known as Tesla slashed the prices of its Model Y vehicles in Australia by over 9%, setting the starting price of approximately $42,240. This decision coincides with a surge in electric vehicle sales in Australia, where Tesla ranks as the sixth most popular
automotive brand. Now the price reduction in Australia is part of Tesla's broader strategy to remain competitive, evidenced by the introduction of a 0% financing offer on the Model 3 and Model Y models in China till the end of April. Now this marks Tesla's first foray into interest free promotions in China and the electric vehicle market globally.
Now contrarily, Tesla has raised the prices of all Model Y variance in the United States and Europe and also in China, despite some existing incentives coming to an end. Nevertheless, significant discounts on the Model Y inventory remain available in the US and other markets.
Tesla stock experienced a 1.6% increase reaching 171 .5 and these pricing adjustments and during these pricing adjustments and this files a rebound where the stock went up by 1% to 100 and 6838. Now the company's stock purchased activities by Kathy Wood which involved acquiring 319,000 shares over 2 days also contributing to the stock
movement. Now to keep its sales momentum going, Tesla has aggressively reduced prices and offered discounts throughout 2023 and also 2024, causing a significant dip in auto gross margins from a high of 30% and quarter 4/20/21 to below 20%. And following Tesla's announcements of lower than expected global deliveries of 386,810 vehicles in quarter one, HSBC revises Tesla price target downward, maintaining a reduced rating on the shares.
Now this report has sparked a wave of criticism for both supporters and also skeptics, attributing the poor performance to challenges in the production ramp up and factory shutdowns. Now, analysts have adjusted their 2024 earnings projections for Tesla downwards, indicating a potential second conservative year of profit declines for the company. The revised forecast reflect a more than 26% reduction in EPS consensus estimates since the end of 2023.
And despite A disappointing first quarter, expectations for Tesla's business are higher for quarter 2 with anticipated improvements in Model 3 and cyber truck sales in the US and a potential uptick in Chinese sounds. Now Tesla's stock performance has seen fluctuations, the 2.9% increase last week but trading below the 50 day moving average. Leaked emails from Elon Musk suggested push for the latest full self driving update in North America along with a one
month free trial offer for FSD. Now Tesla faced A notable decline in stock value on March 15th, reaching a new low for 2024 stocks. Performance ranks in eighth among auto manufacturers with relatively low composite and relative strength ratings. Now hedge fund manager Pearl Lekender has expressed A bleak outlook for Tesla, though, predicting the company could face bankruptcy and its stock could plummet to $14.00 for a pest.
To make it edit this out a very pessimistic view following Tesla's quarter one delivery report, which fell short of market expectations. And Pair is a bull. And Lekender attributes Tesla's challenges not to supply chain disruptions but to a demand problem, particularly with the Model 3 and Model Y vehicles. He does not anticipate any significant recovery for Tesla in the near term due to the aging model lineup and economic conditions.
Now, Tesla's first quarter delivery shortfall has led to a chorus of negative opinions, with analysts pointing to the harsh realities of scaling electric vehicle production. And despite Tesla's valuation, increased competition and market pressures are contributing to skepticism about the company's
future. Now Wedbush Securities analyst Dan Ives described Tesla's first quarter performance as a disaster, calling it a crucial moment for the company to recover or face potential long term challenges. But amongst the criticism, Tesla continues to receive support, notably from Kathy Woods Arc Invest, which purchased Tesla stock ahead of the delivery report.
Some analysts remain optimistic about Tesla's long term prospects, citing potential catalysts like the promotion of the FSD feature and also the free trial of full self driving. The RBC Capital Markets analyst Tom Nerian highlighted Tesla's energy storage and autonomy as key factors in this position. Rating edit this out in his positive rating on the company's
stock. Despite the first quarter setbacks, there remains a belief in Tesla's potential to leverage this technology for future growth. Now, Tesla's recent price adjustments and promotional offers show that it's going to work to stimulate sales amidst A challenging period marked by lower than expected delivery figures and a downward revision in earnings forecasts.
The company's stock has experienced volatility with its future prospects contingent on its ability to navigate the competitive electric veal market and capitalize on its technological innovations. Hey, thank you so much for listening today. I really do appreciate your
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