Mason Trinca | The Washington Post | Getty Images
A Tesla Model 3 is seen in the general assembly line at the Tesla factory in Fremont, California, on Thursday, July 26, 2018.
Tesla is cutting the prices on all of its models by $2,000 to help offset a reduction in federal tax credits for drivers who buy electric vehicles.
Tesla was able to use to lure buyers in the past. That was cut in half to $3,750 starting Jan. 1.
The company announced the price cut Wednesday as it released its production and delivery results for the fourth quarter that disappointed investors and sent shares south in premarket trading.
Tesla said it made the move to soften the impact of falling federal tax credits. But some bearish investors are likely interpreting it as a move to stimulate demand, said Wedbush analyst Dan Ives.
“It was a move that was within the realm of possibility, but it caught investors off guard,” he said.
Tesla shares were down 8 percent in premarket trading Wednesday.
from News fore today http://bit.ly/2AnrHfa
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