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Tesla Inc. Shares Dropped After Company Announced To Cut The Prices Of Its Vehicles

Tesla reports losses of $785 million, despite increased Model 3 Production and Revenue

In businesses, it’s uncertain what will happen in future and to remain in the industry sometimes the company will have to take bold moves, it seems like Tesla is going through that situation. According to the recent reports Tesla Inc. officially declared to cut the prices on of its cars which have shocked many investors on the wall street due to which the shares of the E-vehicle making company fell by more than 7 percent. On Wednesday Tesla decided to reduce $2000 on all models which shocked many investors as well as customers of the company. Many speculations are going on in the wall street because many analysts think the company has taken this move to mitigate the losses. Tesla has made a right amount of profit in the third quarter of 2018, but overall the company’s still in losses.

The CEO Elon Musk a few days ago said that the company managed to finish the production of Tesla model 3, but still the company is in the loss. There are have been many controversies which Tesla had to face in 2018 because of Elon Musk which also impacted on the company’s annual sales. Musk has been under pressure from the investors to complete the production Model 3 and to achieve that target company has burned lots of cash. Now many wall street experts believe that the company has reduced these prices to increase the sale of Tesla Model 3 and other vehicles.

Tesla managed to save Federal Tax in 2018, and now many are predicting because of this benefit the company has reduced the prices of its vehicles. However, so far this news of lowering the rates has not benefited the company at all, but in the future, it might be.