Tesla, Inc.’s TSLA price cuts since January have done little to move the needle on inventories.
What Happened: Future Fund’s Gary Black recently suggested some pricing options for Tesla as the electric vehicle maker’s Model 3 inventory level in the U.S. remains elevated.
Model 3 inventories in the U.S. were above the Dec. 2022 levels, Black noted, citing tesladata.mattjung.net, which built several data sets based on information from Tesla’s website.
Black Suggests Solution: The fund manager noted that the price of the Model 3 Performance now starts at $52,990, which is just $1,000 below the price of the Model Y Performance, and suggested a few options Tesla should consider to push the former vehicle’s sales.
Black said the company should reduce the price of the Model 3 Performance to $49,900 or price the Model 3 Long Range, All-Wheel Drive at $44,900 to fill in the price gap.
Tesla’s aggressive price cuts have polarized analysts and investors alike. Wall Street analysts are increasingly becoming pessimistic of the company’s margins, unwilling to buy into Elon Musk’s argument that a margin hit now will be offset by a potential margin boost from the company’s future full-self-driving software.
Tesla closed Friday’s session up 2.57% at $164.31, according to Benzinga Pro.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.