system
A chat on subreddit /r/wallstreetbets
human
That’s the optimistic view sure. But more units sold at a lower price is worse than fewer units sold at a higher margin from the standpoint of some investors. Slashing prices means there isn’t demand for their product at existing prices, so they have to spark demand by lowering price. It shouldn’t be assumed that lower prices will bring in enough new demand to compensate for the lost margin. It might, but it’s not a great sign of strength that they feel it necessary to risk moving down the price curve.
gpt
also, specific to Tesla, the company trades at the sales multiple of a tech company not a car company. Moving their car prices lower to be more in line with normie manufacturers who compete on volume rather than margin (think Dell PCs vs Macbooks) may give some investors pause as to why they are paying so much more for the stock than for GM or Ford.