Tesla Inc (NASDAQ:TSLA) has reduced the price of its Model S and Model X vehicles in a renewed bid to spur demand after a series of aggressive price reductions in January lowered the prices of its cars by as much as 20%.
The Tesla Model S now starts at $89,990, down 5%, and the Model X now starts at $99,990, a 9% discount.
The high-end “Plaid” versions of the Model S and Model X have been reduced to $109,990, marking a 4% reduction for the Model S Plaid and 8% for the Model X Plaid.
READ: Tesla’s vision unveiled at Investor Day bolsters Canaccord's conviction in EV maker’s long-term sustainable advantage
Meanwhile, analysts at Jefferies have raised their price target for Tesla stock to $230 from $180 and reiterated their ‘Buy’ rating.
Tesla shares were trading down 1.4% at US$195.10 around noon on Monday.
In a note to clients dated March 5, the analysts wrote that last week’s Investor Day demonstrated that Tesla remains very much a “Day 1” company.
“Lack of new product unveil does not imply major growth delays in our view,” they wrote.
“The focus on doing more with less, not just more at lesser cost, continues to set apart the Tesla culture of resource efficiency, design to manufacture, and continuous improvement. Governance was hinted at, with more to expect from the board.”
The analysts also noted that scaling up the Model 3 and Model Y further through dynamic pricing could limit the scope for earnings surprises in 2023 and 2024, but will benefit free cash flow and return on invested capital.
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