On Thursday Tesla (TSLA.us) cut its prices on its Model 3 and Model Y vehicles in the US.
The Model 3 rear-wheel drive was cut from $40,240 to $38,990 and the Model 3 long-range and performance car was lowered from $50,990 to $45,990. The Model Y long-range vehicle was priced at $48,490 from $50,490 and the Model Y performance car was set lower at $52,490.
Tesla has cut prices a few times over the course of 2023. The moves are aimed at stimulating demand after a miss in Q3 vehicle deliveries.
One concern as per analysts at Goldman Sachs, is that the cut in price will negatively impact on company margins, as average selling prices decline. Tesla introduced a more expensive version of the Model 3 in China and Europe, but not in North America.
- Price has moved up strongly over the course of this week – approximately 4%.
- This has potentially set up a higher trough in the chart (red arrow).
- If price can move above the red down sloping trendline, this will be regarded as a bullish development.
- The RSI is on the bullish side of 50 (green rectangle).
- The longer the indicator maintains on the positive side of 50, the greater the likelihood that price will break above the red trendline.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.