Tesla is cutting its prices, so Wall Street is lowering its forecasts for earnings, fearing profit margins will be decimated. That makes 2023 a scary time for investors in the electric-vehicle company, although things could turn out better than feared.
Over the past week, Tesla (ticker: TSLA) has cut prices for its cars in both the U.S. and China. U.S. prices for some models fell by as much as 20%, as management seeks to make its cars qualify for new U.S. tax credits and prop up demand given more competition and a weakening economy. Chinese prices dropped by as much as 13%.