Tesla has no option but to cut the prices and sustain lowered Tesla share price for long time survival
Until now the Tesla share price has drowned to over 69% cumulative in the previous year. Tesla has no other option but to keep cutting prices in order to compete with emerging EV manufacturing companies. Without a doubt, this will impact Tesla’s share price, leaving investors concerned about their shrinking profits.
There are several factors at play, and a closer look may reveal some important insights that are affecting Tesla Stock.
Increased EV Manufacturers’ Competition
One of the primary factors driving down Tesla’s stock price is the increase in EV competition. Tesla’s success has led to a wave of new electric vehicle (EV) manufacturers entering the market. These also include well-established automakers like Ford and GM. As more companies enter the market, investors are concerned about Tesla’s ability to maintain its market share and profitability.
Supply Chain Issues
Another factor that has contributed to the decline in Tesla’s stock price is supply chain issues. With the ongoing COVID-19 pandemic, many manufacturers are experiencing supply chain disruptions that have led to production delays and increased costs. These issues have impacted Tesla, just like other automakers.
Regulatory Environment
The regulatory environment surrounding EVs is also a factor that has contributed to Tesla’s stock price decline. As governments around the world look to phase out fossil fuel-powered vehicles, there is increasing pressure on automakers to produce EVs. While this is good news for the EV industry as a whole, it also means that Tesla is facing increased competition and regulatory scrutiny.
When will Tesla stock price boomerang?
While it’s difficult to predict with certainty when Tesla’s stock price will bounce back. The company’s long-term prospects rely on a few yet strong components:
Tesla’s Strong Brand
Tesla’s brand is synonymous with innovation, sustainability, and cutting-edge technology. This has helped the company to build a loyal customer base and a strong reputation. As the EV market continues to grow, we believe that Tesla will remain a key player.
Tesla’s Technology Leadership
Tesla has established itself as a leader in EV technology, and this has allowed the company to innovate at a faster pace than its competitors. With new models and technology constantly being developed, we believe that Tesla will continue to stay ahead of the curve.
Expansion Plans Of Tesla
Tesla is expanding rapidly, with plans to open new factories around the world. This will help to increase its production capacity and meet the growing demand for its electric vehicles.
At the end of the day, investing in Tesla is a long-term gameplay, and investors who hold onto their positions will ultimately be rewarded.
