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Tesla Stock Is Rallying Today: What's Going On?
https://www.msn.com/en-us/money/markets/tesla-stock-is-rallying-today-what-s-going-on
© Provided by Benzinga

Tesla Inc (NASDAQ:TSLA) shares are trading higher Monday after the company announced it would increase Model Y prices in several countries.

What Happened: Tesla announced on Saturday that it would increase prices for its Model Y vehicles by approximately 2,000 euros ($2,177) in multiple European countries, per Reuters. The price increases are expected to go into effect on March 22.

The price increase news comes just a day after the EV maker on Friday said it would increase prices for all Model Y vehicles in the U.S. by $1,000, beginning April 1. Tesla previously announced a similar round of price increases for the Model Y rear-wheel drive and long-range models on March 1.

“This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal,” CEO Elon Musk said last month when the price increases were announced on X.
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Goldman Sachs analyst Mark Delaney on Monday maintained Tesla with a Neutral rating and lowered the price target from $220 to $190, citing production challenges and weakening EV demand.

Tesla shares have been under pressure in recent months as the broader EV industry battles waning demand. Tesla’s margins have also been hurt by a pricing war with competitors. The EV maker reported worse-than-expected results in January and turned in disappointing delivery numbers for the second consecutive quarter.

Last week, Tesla shares continued to slide after the company’s China sales fell significantly in February. According to data from the China Passenger Car Association, Tesla sold just 60,365 vehicles made in China last month, down 15.51% from January and down 18.87% on a year-over-year basis. Tesla also had to shut down operations at its Gigafactory in Germany following a suspected arson attack.

Tesla is not due to report earnings again until April. Analysts currently expect the company to report earnings of 67 cents per share on revenue of $25.384 billion, according to estimates from Benzinga Pro.

TSLA Price Action: Tesla shares were up 3.92% at $169.82 at the time of publication, according to Benzinga Pro.