<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Tesla’s stock is in the red in the market pre-open on Monday, likely due to sweeping US price cuts announced by the electric vehicle (EV) maker on Friday. Meanwhile, the company said it would build a Megapack battery factory in Shanghai, but the announcement failed to neutralize the share drop.</p> 
<h3 id="tesla-announces-price-cuts-for-fifth-time-since-january">Tesla Announces Price Cuts for Fifth Time Since January</h3> 
<p>Tesla’s shares are down more than 3% in premarket trading Monday as the markets reacted to the carmaker’s announcement of fresh price cuts on all EVs in the US on Friday. The move marks the fifth price reduction in the US <a aria-label="since January (opens in a new tab)" href="https://www.reuters.com/business/autos-transportation/tesla-cuts-prices-electric-vehicles-us-market-2023-01-13/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">since January</a>.</p> 
<p>According to its website, Tesla slashed prices between 2% and almost 6% in the US as the company looks to boost demand amid rising interest rates. On the other hand, analysts said Tesla’s aggressive discount drive on its EVs could increase its profitability.</p> 
<p>Tesla slashed prices on both versions of its Model 3 sedan by $1,000 and Model Y crossover vehicle by $2,000. The company’s luxurious Model S and Model X vehicles, which have seen a slowdown in sales recently, saw their price reduced by $5,000 each.</p> 
<p>Tesla’s price cuts also come as the US prepares to impose stricter standards this month to limit EV tax credits. According to Tesla, the more stringent standards would <a aria-label="reduce the $7,500 tax credit (opens in a new tab)" href="https://www.npr.org/2023/03/31/1167084120/electric-vehicles-cars-tax-credit-climate-bill" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">reduce the $7,500 tax credit</a> available for the base version of its rear-wheel drive Model 3.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="tesla-to-open-megapack-battery-plant-in-shanghai">Tesla to Open Megapack Battery Plant in Shanghai</h3> 
<p>On Sunday, Tesla announced plans to build a Megapack battery factory in Shanghai as the automaker doubles down on its investments in China, its <a href="https://tokenist.com/teslas-china-sales-increased-31-yoy-in-feb-shares-up-1-7-premarket/" rel="dofollow" class="deco-link">second-largest market</a>. The new plant will enable Tesla to produce 10,000 Megapacks – large-sized batteries that can store vast amounts of electricity. The announcement failed to offset the price cuts’ damaging impact on Tesla’s shares in the premarket.</p> 
<blockquote class="wp-block-quote"> 
 <p>“Tesla opening Megapack factory in Shanghai to supplement the output of Megapack factory in California.”</p> <cite>– Tesla CEO Elon Musk wrote on Twitter. </cite>
</blockquote> 
<p>Tesla opened its car plant in Shanghai in 2019, its first factory outside the US. The plant, which currently produces 22,000 vehicles per week, saw a <a href="https://tokenist.com/tesla-continues-to-dip-on-news-of-shanghai-production-cut-down-5-4-in-premarket/" rel="dofollow" class="deco-link">production cut</a> last year amid <a href="https://tokenist.com/wuhan-locks-down-1m-people-as-chinas-economy-remains-uncertain/" rel="dofollow" class="deco-link">lockdown restrictions</a> in China due to Covid-19.</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><em><strong>Will Tesla’s plan to boost demand through price cuts work out? Let us know in the comments below.</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/tesla-down-3-premarket-after-us-price-cut-announced/">Tesla Down 3% Premarket After US Price Cut Announced</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Tesla Down 3% Premarket After US Price Cut Announced

Table of Contents

TokenInsight

Other articles published on Apr 10, 2023

Notice on GDAC Exchange Hack Alert

Coinbase Head of Exchange Announces Departure, Says He Has “A Lot to Build”

🗒 Daily Newsletter | Monday, April 10, 2023

Ripple (XRP) Supporter and Lawyer Offers Alternative Perspective on XRP Sales

All Eyes on Bitcoin [BTC] as Coinbase CEO Reveals…

Shiba Inu Burns Over 1.1 Billion Tokens in a Single Transaction

Join our free newsletter for daily crypto updates!