Tesla Plunges To Over One-Year Low After Price Cuts
Tesla's stock slumped 5.61% during the day to $138.80, the lowest since Jan. 25, 2023.
Shares of Elon-Musk headed Tesla Inc. plunged to over one-year low on Monday after the carmaker announced price cuts across the globe ahead of its quarterly results. On weekend, Tesla has cut prices of its best-selling range, including full-self-driving models, in China, the US and Europe amid falling sales and growing inventories, Bloomberg reported. The cut came following disappointing sales numbers in the first quarter. China, and the US are one of the key markets for the carmaker.
Later on Tuesday, Tesla is likely to report a 40% drop in its operating profit, and a decline in revenue in four years, Bloomberg reported. This also weighed on the investors' sentiment, leading to the selloff.
Tesla's stock slumped 5.61% during the day to $138.80, the lowest since Jan. 25, 2023. It pared losses to settle at 1.77% lower at $144.44 on Monday, compared to a 1.11% advance in the Nasdaq Composite index.
The share price has declined 12.61% in the last 12 months and 42.83% on a year-to-date basis. The total traded volume so far in the day stood at 1.1 times its 30-day average. The relative strength index was at 27.83, implying that the stock maybe oversold.
Out of 61 analysts tracking the company, 20 have a 'buy' rating on the stock, 27 recommend 'hold' and 14 suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 30.8%.
