Tesla offers very deep discounts

Tesla has gone from slashing prices a year ago to massive discounts on cars piling up its inventory. The automaker offers customers two ways to buy new cars online: They can place a custom order by choosing the type of car, paint color, wheels and other options, or they can browse the site where Tesla lists the cars it has on the market.

Although Tesla has been charging $1,000 more to order its best-selling car, the Model Y, in the US since the beginning of the month, the company is offering the biggest discounts on its SUVs. The rear-wheel drive version, for example, is available for a $4,600 discount, while the Long-Term and Performance models are discounted by at least $5,000.

Way cheaper than you think https://t.co/2ssWoSiBon

– Tesla North America (@tesla_na) April 3, 2024

Tesla is making these offers after the company produced 46,561 more vehicles than it did in the first quarter, making it the most vehicles in inventory ever (Here is the preliminary report for the first quarter) Although the company attributed the decline in parts to the conversion of its California plant to produce the upgraded Model 3 sedan and the temporary closure of its plant in Germany, some analysts disagreed.

The difference between the number of cars that Tesla built and sold in the quarter “belies the idea that the first quarter’s delivery was constrained by supply rather than demand,” Ryan Brinkman, an analyst at JPMorgan, wrote that he gave Tesla shares a “sell” rating. April 3 report.

Brinkman cut his price target on the stock to $115 from $130 previously, and lowered estimates for first-quarter revenue and earnings per share. Now he expects Tesla to see a free cash flow of $1.3 billion instead of an inflow of more than $300 million because of an expected record increase in finished goods inventories. Tesla shares have fallen 31% this year, making them the second-worst performer in the S&P 500 Index.

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FMW/Bloomberg

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