Tesla (TSLA) Numbers Cut After 5/27 Model Price Cut - Argus

Argus analyst Bill Selesky reiterated a Hold rating on Tesla (NASDAQ: TSLA) while cutting estimates after the company announced price cuts of approximately 6% on its Model S, Model X and Model 3 in North America and its Model S and Model X in China. The company announced price cuts of approximately 6% on May 27, most likely in an effort to boost sales.

The analyst stated "The price cuts suggest that the company's sales are slowing in both North America and China, and that the negative impact of the pandemic could continue much longer than we had anticipated. We had initially expected fairly robust deliveries from Tesla in 2020, as consumers flocked to the Model S, Model X, and more recently, the Model 3. However, due to the pandemic, we have lowered our 2020 vehicle delivery forecast by 19% to 409,000. We are also concerned about the potential impact of tensions between the U.S. and China on Tesla's manufacturing facilities in Shanghai, as we had expected China to account for 30% of production volume in 2020, up from 13% in 2019".

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Shares of Tesla closed at $884.00 yesterday.

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