1st Quarter 2024
Losing trade per my analysis

Tesla is the leading electric vehicle manufacturer in the world. Tesla is the most common electric car company, contributing to 55% of the total number of electric cars in the United States. So, how come Tesla (TSLA) is set to hit a 15-month low? There are several factors to the stock decrease. The first factor is linked to price reductions. Tesla lowered their prices by 25%. Tesla's pricing decreases were aimed at helping to compete with other electric car companies such as Ford and Volkswagen. Both of these companies have automobiles with lower MSPRs, therefore Tesla reduced prices to gain a competitive advantage. As more companies release electric vehicles, the market grows and customers are presented with additional alternatives. This led to Tesla sales decreasing. In 2023, electric car sales surged by 35% from 2022. This indicates that the EV market is expanding. Companies such as Audi, Mercedes, BMW, and Porsche are manufacturing more premium electric vehicles. In addition to competition in the USA, Tesla reduced prices in China to compete with Chinese companies. China is one of the biggest markets for Teslas.