Experts became extremely worried about Tesla’s future as the company’s stock fell nearly 9% on Thursday. The stock is down by almost 70% year-to-date.
Canaccord Genuity trimmed its price target for the automaker from $304 to $275 after the bell on Wednesday, mentioning “cosmically bad” public sentiment and a “distraught” investor base. “Elon Musk is doing Elon Musk things,” Canaccord’s George Gianarikas recorded. “Some of this is Twitter-related drama, much is not.”
Meanwhile, in an effort to encourage customers to take deliveries, Tesla started offering $7,500 discounts on some of its high-priced electric vehicles in the United States on Thursday, doubling its previous incentives. Credit is also available in Canada and Mexico. Tesla also reduced the cost of cars in China in October.
The price reduction on Tesla’s Model 3 sedan and Model Y crossover are seen as a sign of a weakening market.
The company has also tried to stir the sales and deliveries with a present of 10,000 miles of free charging for customers at its Superchargers who take delivery of their new Teslas in December.
Buyers of Tesla and other American-made electric vehicles will most likely be eligible for a $7,500 incentive beginning in January as part of Biden’s Inflation Reduction Act. Many potential Tesla owners had been refraining from taking delivery of their new cars from the company until the credits took effect.
CEO Elon Musk’s action as the new owner and CEO of Twitter has also caused dire concern for long-time Tesla bulls, who are calling on the company’s Board of Directors to stop him and get him to focus on the electric car and renewable energy company.
Musk sold around $23 billion in Tesla stocks for financing the deal to acquire Twitter in a $44 billion deal that closed at the end of October. He has since admitted to making an “obvious” overpayment.
According to Ortex estimates, Tesla small investors have made more than $15 billion in profits year to date, making Tesla a most beneficial short so far in 2022. Amazon and Facebook have traded places behind Tesla this year, with short profits of more than $5 billion each.
