Source: Gasgoo Author: Ramy
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According to Reuters, after Tesla announced a price increase for its Model Y models in some European countries and the United States, the company’s stock price rose by nearly 7% on March 18.
On March 16, Tesla issued a statement stating that starting from March 22, the price of Model Y in some European countries will increase by approximately 2,000 euros (approximately $2.177). Previously, on March 15, the company announced that starting from April 1, the price of all Model Y models in the United States would be increased by $1,000.
On March 18, Tesla’s stock price rose by nearly 7% to $174.72 after the above news was released, which was the stock’s largest single-day increase in more than a month. Previously, Tesla’s stock price had declined for two consecutive weeks. That day, Tesla’s stock price closed at $173.92, a final increase of 6.3%.
Image source: Tesla
Analysts at Deutsche Bank said in an investor note, “Given that Model Y inventory continues to be high, we believe Tesla’s price increase is an attempt to boost sales this month rather than a sign of strong demand.
According to LSEG data, the current median forecast of 49 analysts covering Tesla stock is $193, down from $211.5 a month ago, and the average recommendation of these analysts is a “hold.”
Goldman Sachs analysts lowered their 12-month price target on Tesla shares to $190 from $220, citing obstacles to Model 3 production growth and the shutdown of its Berlin factory following an arson attack.
On March 17, Goldman Sachs analysts led by Mark Delaney wrote in an investor report that Tesla’s sales will also be affected by reduced subsidies for electric vehicles in Europe, increased competition from Chinese companies, and slowing demand. Delaney noted, “We believe that while Tesla has a strong position in the EV and clean energy markets and will be well-positioned for growth over the long term, recent weakness in the EV market is putting pressure on earnings.
