Rally

<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="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">Tesla announced <a aria-label="Tesla announced a new wave of price cuts (opens in a new tab)" href="https://www.cnbc.com/2023/10/06/tesla-cuts-model-3-model-y-prices-in-the-us-after-deliveries-fall.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">a new wave of price cuts</a> on Friday after the company’s <a href="https://tokenist.com/teslas-q3-deliveries-miss-wall-street-estimates/" rel="noopener noreferrer nofollow" class="deco-link">Q3 deliveries missed Wall Street’s estimates</a>. Likely in its quest to keep demand high, Tesla reduced prices of some of its Model 3 and Model Y versions, sending the company’s shares lower at the market open.&nbsp;</p>
<h3 id="tesla-cuts-prices-again-after-weak-q3-delivery-report">Tesla Cuts Prices Again After Weak Q3 Delivery Report</h3>
<p>Tesla’s shares tumbled 2.3% at the Friday market open after the world’s most valuable automaker announced the latest batch of price cuts.&nbsp;</p>
<p>Notably, Tesla reduced prices of some of its Model 3 and Model Y versions in the US to spur demand after previously missing expectations for Q3 deliveries. Following the adjustments, the official website shows that the starting price for Tesla’s Model 3 is now $38,990, down from $40,240.&nbsp;</p>
<p>The long-range Model 3 version’s price has been cut from $47,440 to $45,990, while the Model 3 Performance fell from $53,240 to $50,990. Similarly, the company’s Model Y Performance is now priced at $52,490, down from $54,490.&nbsp;</p>
<p>The move comes in response to Tesla’s <a aria-label="recent Q3 report (opens in a new tab)" href="https://ir.tesla.com/press-release/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-third-quarter-2023" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">recent Q3 report</a>, which showed that the automaker delivered 435,059 in the quarter, missing analysts’ estimates and down from the previous quarter. The company blamed the decline on the <a href="https://insideevs.com/news/688814/tesla-q3-2023-deliveries-production/" target="_blank" aria-label="planned factory downtimes (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">planned factory downtimes</a> at the Giga Shanghai and Giga Texas plants.&nbsp;</p>
<p>It is also the latest in a <a href="https://tokenist.com/tesla-drops-3-after-price-cuts-announced-in-china/" rel="noopener noreferrer nofollow" class="deco-link">series of price cuts for Tesla</a>. The car manufacturer began reducing prices of its vehicles late last year to spark a demand rebound amid concerns over sluggish consumer spending and intensifying competition in the electric vehicle (EV) space.&nbsp;</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="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p>
 </div>
</div>
<h3 id="tesla-s-2023-rally-impressive-but-risks-arise-as-fed-reiterates-hawkish-stance">Tesla’s 2023 Rally Impressive, But Risks Arise as Fed Reiterates Hawkish Stance</h3>
<p>From a stock performance standpoint, today’s decline has a minor impact on Tesla’s remarkable 2023 ascent. In particular, TSLA surged by more than 135% year-to-date, making it one of the <a href="https://tokenist.com/most-of-sp-500s-gains-driven-by-7-firms-others-up-less-than-5-ytd/" rel="noopener noreferrer nofollow" class="deco-link">seven stocks most responsible for the S&amp;P 500’s rally</a>.</p>
<p>However, investors have been increasingly defensive lately regarding risk assets, mainly because of the Federal Reserve’s recent message about its plan to keep interest rates higher for longer. The main reasons behind the Fed’s persisting hawkishness include stubborn inflation and the incredibly resilient US economy. On Friday, the new non-farm payroll (NFP) report showed that <a href="https://tokenist.com/stock-futures-dip-as-nfp-data-shows-labor-market-still-hot/" rel="noopener noreferrer nofollow" class="deco-link">job additions hit 336,000</a> in September, nearly twice the economists’ estimates.</p>
<p>Meanwhile, Cathie Wood’s Ark Investment Management <a aria-label="sold $25.5 million worth of Tesla shares (opens in a new tab)" href="https://www.investors.com/news/cathie-wood-sells-25-million-in-tesla-stock-as-tsla-flashes-aggressive-buy-signal/#:~:text=Cathie%20Wood's%20Ark%20Investment%20Management,260.05%20price%20at%20the%20close." target="_blank" rel="noopener noreferrer nofollow" class="deco-link">sold $25.5 million worth of Tesla shares</a> on Wednesday, the company’s daily trade disclosure revealed, followed by another minor sale a day later.&nbsp;</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>Do you think TSLA will give up some gains in the coming months if the Fed delivers another rate hike? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/tesla-drops-after-price-cuts-more-pain-to-come/">Tesla Drops After Price Cuts, More Pain to Come?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Tesla Drops After Price Cuts, More Pain to Come?

Table of Contents

Tokenist

Other articles published on Oct 6, 2023

Binance’s 2017 ICO flopped, exchange reportedly raised $5m

Sunak’s Speech Smokes the Stock, the BATS Stock Price Declined

ConsenSys exec on MetaMask Snaps security: ‘Consent is king’

Aptos Price Prediction: Will APT Crypto Skip The Consolidation?

Gary Wang said at the SBF trial, “We allowed Alameda to withdraw unlimited funds.”

Crypto Custody Firm Komainu Receives Custodial Approval from UK's FCA

Join our free newsletter for daily crypto updates!