Tesla Model 3 price cut adds to margin questions, says Barclays

Barclays analyst Dan Levy says Tesla cut its U.S Model 3 inventory vehicle pricing by up to $5,500. The cuts, which reflect a further increase in discounts already in place on inventory, come ahead of a likely Model 3 refresh and add to questions on whether Q2 will prove to be the gross margin trough for Tesla, the analyst tells investors in a research note. The firm sees further discounts ahead amid the company’s push to drive volume higher. This reaffirms the case for negative consensus earnings revisions in 2024, contends Barclays. It keeps an Equal Weight rating on Tesla with a $260 price target.