Tesla share price (NASDAQ: TSLA) pops this morning, up 5.5% amid news of a price increase coming soon. The leading EV manufacturer has made a strategic move by increasing the price for its popular Model Y vehicles in the United States by $1,000, with the new prices taking effect starting April 1. This adjustment comes as something of a surprise given the broader context of the company's recent financial performance and stock market trends but has been warmly received.
Despite the company's significant downturn YTD with stock prices dropping by 30% Tesla's market cap keeps the company within the ranks of the highly valued U.S. companies with a capitalization of $549.2billion.
The current starting price for a Tesla Model Y, with the price increase and after factoring in a $7,500 tax credit, now stands at $36,490. This update might suggest a confident stride by Tesla in asserting the value proposition of its vehicles amidst market pressures and changing regulatory landscapes that affect electric vehicle incentives.
Aligning with these volatile stock patterns, Tesla maintains a Price-to-Earnings (PE) ratio of 40.08, which is substantially higher relative to many of its industry counterparts, suggesting investors are expecting higher future growth from the company. Additionally, the earnings per share (TTM) is noted at $4.30. Anticipation builds as Tesla is expected to report its next earnings on April 17, 2024 which will provide further clarity on its performance trajectory.
Setting sights on the future, analysts have posited an average one-year target price of $207.74 for Tesla stock. Despite the uncertainties and recent downturns, this target indicates a belief in Tesla's recovery and sustained growth potential. The high mark of $320, and the low $23.53 provide an insight into the stark differing of opinions where TSLA is concerned.
In other news, unfortunately one big Tesla believer, and now former CEO of Hertz Stephen Scherr stepped down as his aggressive move to order 100,000 Tesla vehicles backfired, as earlier price cuts on the Model 3 and Model Y impacted asset values.
The EV industry will next be watching next for Xpeng (NYSE:XPEV) earnings tomorrow in anticipation, and there will be expected to be a knock on effect to TSLA one way or another.
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