Shulou(Shulou.com)11/24 Report--

CTOnews.com April 5 news, Tesla at the beginning of this year in the United States, China and Europe and other key markets to implement significant price cuts, which caused a shock in the industry. This has forced some competitors to follow suit, even though they don't have Tesla's large profit margins.

While things have stabilized since january, Wedbush securities analyst dan ives thinks tesla has room to cut prices in the short term.

In an interview with TD Ameritrade Network, Ives pointed out that Tesla's Model 3 and Model Y price cuts have brought huge returns to the electric car manufacturer. "They made the best decision to stimulate demand by cutting prices. I think it paid off for them in the end,"Ives said.

He added, however, that Tesla's margins would be tighter going forward, and "the key is margins because price cuts affect that," he wrote in an April 2 note to customers. CTOnews.com understands that Tesla will announce its full financial results for the first quarter on April 19, when it will announce information on profit margins.

Despite the expected lower margins, Dan Ives seems inclined to believe Tesla may cut prices again this year.

"Their margins give them more flexibility than other vendors to make these cuts," Ives said."I think that's still true, especially as battery costs come down in the months and years ahead. "

Even after the price cuts earlier this year, Tesla still has higher margins than the industry average, which will allow it to lower prices further if needed, the analyst said.

Dan Ives, a longtime Tesla bullish analyst, said demand looks solid. He also downplayed the fact that Tesla's share price fell after it released its first quarter 2023 data, describing it as an instinctive selling reaction after the stock nearly doubled this year.

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