Tesla, Inc. (NASDAQ:TSLA) stock slipped further in premarket trading on Wednesday, dragged down by another round of automaker’s price cuts.
The Elon Musk-led company updated the prices of all Model Y variants and the base model Model 3 car in the U.S. late Tuesday. Model Y prices were lowered between 6% and 9%, with the cheapest Model Y now costing $46,990 before the $7,500 EV tax credit. The price of the rear-wheel drive Model 3, which is now eligible for only half of the EV tax credit, was lowered by 4.8% to $39,990.
The move is expected to intensify investors’ worries concerning margin erosion.
Tesla is scheduled to release its first-quarter results Wednesday after the market close, with analysts modeling the smallest revenue growth since the second quarter of 2020. The consensus estimate also calls for a decline in earnings per share from $1.07 to $0.85.
See Also: Cybertruck Updates, Price Tweaks, Dividends And More: Key Questions On Tesla Investors’ Minds Before Q1 Results
If the stock fails to hold support at its 200-day moving average of $180, it could pull back toward its mid-March lows of around $164. On any potential upside, the stock could stall its psychological resistance of $200. Further up, the $207 level could serve as resistance.
Price Action: In premarket trading on Wednesday, Tesla shares fell 2.27% to $180.12, according to Benzinga Pro data.
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