Tesla (TSLA) cut prices on its full U.S. lineup for the third time in 2023, slashing up to $5,000 off of its EVs. Tom Narayan, RBC Capital Markets Lead Equity Analyst for Global Autos joined Yahoo Finance to discuss the cuts.
Narayan explained that Tesla’s lower costs makes it easier for the company to cut prices without sacrificing profits. “I do think that this strategy of cutting prices gonna lead to a higher sales, and fortunately for them, they do have some unique characteristics that make it so they don't have to sacrifice too much on profitability,” he told Yahoo Finance.
Watch the full interview with Seana Smith and Jared Blikre here.
Key video moments:
00:00:19 On Tesla being in a unique position
00:00:34 “It’s a great way to steal market share”
