In an attempt to increase sales, the electric car manufacturer, Tesla Inc., I opted for a strategy to lower the values of the car supply. It seems the initiative was successful and the company’s actions will mark a better start to the year.
The company is expected to Elon Musk announce quarterly delivery and production figures in early April. Shareholders, thus, will soon find out how well the company’s strategy worked.
From the media agency Bloomberg, have carried out a series of surveys of financial analysts; who anticipated that the company based in Austin, Texaswill deliver a record 421,164 cars globally in the first quarter of 2023, up from the 405,278 it delivered last quarter.
Dan Levianalyst of Barclays, a major financial services company, told its clients that “Over the last few months, Tesla has gone from being limited by supply to being limited by demand.” However, although the concerns about the temporary demand that they had when prices fell have subsided, Levy assured that lately “the doubts have returned.”
Tesla missed 2022 delivery estimates and said it was still working on logistical issues as production had outpaced sales for three straight quarters last year. In the fourth quarter, it produced 34,000 more cars than it delivered. Added to this, the company’s shares fell 62% when Elon Musk sold shares to help finance his purchase of Twitter, that same year. Purchase that cost about 44 billion dollars.
In the year 2022 the shares of Tesla Inc. they fell 62%.
As in various countries and industries, Tesla it was dealing with inflation and high interest rates that make it more expensive for consumers to finance large purchases. As a measure, he decided to cut prices at different points. First he did it in ChinaThen in USA and in Europa.
Not only inflation took its toll on the industry and the main electric car company; the implosion of Silicon Valley Bank also scared Californiaa key part of Tesla’s customer base.
Since then, other car manufacturers have followed the strategy of Elon Musk. Other automotive companies, such as Ford Motor Co.they also decided to lower the price of their electrical products.
While the cuts will reduce the profits of Tesla, Its shares have posted a strong rally since then: The shares are up 59% this year. Analysts and investors have also pointed out that the considerable margins of Tesla They give you an advantage over your rivals.
Dan Levi It expects the automaker to keep cutting prices, due to weak macroeconomic prospects and steps taken by other automakers, and to deliver about 425,000 cars this quarter.
Tesla built and delivered more than 1.3 million cars in 2022 and has said it will build between 1.8 million and 2 million vehicles in 2023.
Elon Musk, stated in this regard, in January of this year, that “demand will be good even though there will probably be a contraction in the auto market as a whole” and added that “there are a lot of people who want to buy a Tesla car, but they can’t afford it. So these price changes really make a difference for the average consumer. The price really matters.”
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