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Tesla’s huge price cuts are hitting the stock one way and its outlook in another

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Tesla (NASDAQ: TSLA) pushed huge price cuts on its vehicles in both the United States and China within the past few weeks, but the automaker’s decision is hitting the stock in one way and its outlook in another.

After the Austin-based automaker slashed prices by as much as $13,000 in the United States and 13.5 percent in China, speculation persisted that Tesla was making the move to combat demand declines. However, the moves, whether made by Tesla to spike demand or for other reasons, have provided a significant spike in the automaker’s registrations in China.

Additionally, Tesla’s inventory in the United States has more than halved since the company announced the price cuts on January 12.

The news of Tesla registrations in China, along with other potential catalysts, like what appears to be an imminent deal with Indonesia for an EV production plant, has the stock up nearly 5 percent on Tuesday morning. After a tough 2022, Tesla stock has rebounded 18.6 percent so far this year.

However, the price cuts across several markets did not bode well for its outlook from many analysts.

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Jefferies analyst Phillipe Houchois cut the firm’s price target on Tesla stock from $350 to $180, citing a potential regression in earnings potential. The analyst said rebasing earnings is “painful,” but the move shows Tesla has more levers to pull than other OEMs to trigger demand.

Tesla’s operating margin is currently third among all global automakers, trailing only Ferrari and BMW.

Additionally, Bank of America cut its price target to $130 from $135, citing increased competition and softening demand:

“In our view, the rationale for lowering prices could reflect the following: 1) Increasing competition with a flood of new EV models; 2) Weakening auto demand amidst the difficult macro backdrop; 3) Strategy to crowd out completion as capacity is ramping up across the industry; 4) Effort to qualify vehicles for Inflation Reduction Act tax credits as base prices for the Model Y and Model 3 in the US are now below the required MSRP thresholds; 5) Opening up the lower end of the market to drive volume growth.”

More automakers are bringing more EVs to the market, and while Tesla is experiencing increased demand due to more EV models, it is still the tried-and-true leader of the sector. Tesla led several markets in EV sales by manufacturer, including the United States and Germany.

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Despite the stock going one way and analyst sentiments going another, Tesla is set to deliver several new products in 2023, including the long-awaited Cybertruck. The company is also expected to shed more light on its next-generation platform during its 2023 Investor Day in March.

Tesla shares were trading at $129.39, up 5.71 percent, at 11:40 on the East Coast.

Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”

The remarks came as Tesla shares crossed the $400 mark on the stock market.

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Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock. 

The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.

Elon Musk’s nonstop work schedule

Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”

Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.

“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design. 

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“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post

Wartime CEO

Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X. 

With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.

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Elon Musk confirms cryptic X post was related to SpaceX, not TSLA stock

Musk shared his update in a post on social media platform X.

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Joel Kowsky, Public domain, via Wikimedia Commons

Elon Musk has confirmed that a cryptic post he shared earlier this month was related to his private sale enterprise, SpaceX, not electric vehicle maker Tesla. 

Musk shared his update in a post on social media platform X. 

Musk’s cryptic post

Earlier this month, the CEO posted the cryptic words “You’ll Thank Me Later” on X. The post quickly gained attention on social media, as Tesla watchers and Elon Musk fans speculated on what the words could mean. With the announcement that Musk has purchased $1 billion of TSLA stock in the open market, some speculated that the cryptic post was a teaser of sorts to shareholders.

Musk’s massive TSLA purchase was the biggest in history, and it also stood as a notable vote of confidence for the company as it attempts to enter a new era led by robots, AI, and autonomous driving. This was likely one of the reasons why Tesla stock saw a notable rise on Monday’s trading. In another post, however, Musk confirmed that his cryptic post was not in any way related to his stock purchase.

All SpaceX

Considering that all the words in Musk’s post started with an uppercase letter, some space fans immediately speculated that the CEO was teasing something related to SpaceX. The company’s three drone ships, Just Read the Instructions (JRTI), Of Course I Still Love You (OCISLY), and A Shortfall of Gravitas (ASOG), after all, follow similar naming styles. 

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This was one of the reasons why some TSLA shareholders noted on X that Musk’s post was likely SpaceX-related. In response to one of these comments, Musk stated that these speculations are “Correct.”

The only question now is what exactly Musk was referring to in his post. Perhaps the CEO really was hinting at the name of the drone ship that will be tasked to retrieve Starship in the middle of the ocean.

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Tesla Model Y leads as weekly registrations in China hit Q3 high

Out of Tesla China’s 15,350 registrations, the Model Y once again accounted for the majority.

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Credit: Tesla China

Tesla recorded 15,350 insurance registrations in China during the week of September 8–14, marking a 7.3% increase compared to the prior week. The figure also represents the highest weekly result so far in the third quarter of 2025.

Model Y still leads demand

Out of the 15,350 registrations, the Model Y once again accounted for the majority. Data shows 9,460 registrations for the standard Model Y, complemented by 1,030 units of the newly launched extended wheelbase, six-seat Model Y L. Tesla also logged 4,860 Model 3 sedans for the week as well, as noted in a CNEV Post report.

The Model Y L, which debuted in late August, registered a modest uptick from the 900 registrations it saw the week before. Volumes remain relatively low, suggesting that the variant will not meaningfully change Tesla’s third-quarter sales trajectory. That being said, Tesla China’s previous comments about the Model Y L’s demand suggest that an uptick in registrations may be coming in the next weeks.

The ramp of the Model Y L will likely be a notable topic among Tesla watchers, as its ramp will still be quite a task despite the vehicle being just a new variant of the all-electric crossover. With this in mind, meaningful numbers of Model Y L registrations may hit their pace in the next quarter instead.

Tesla China’s momentum

As per data from the China Passenger Car Association (CPCA), Tesla’s retail sales in August 2025 totaled 57,152 units. That figure marked a 9.9% decline from August 2024’s 63,456 units, but a significant 40.7% increase from July’s 40,617 deliveries.

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Quarter-to-date, Tesla China’s results show a 34.4% gain compared to the previous quarter but remain down 11% year-over-year. Year-to-date, Tesla is down about 7% in China versus the same period in 2024. With only a couple more weeks before the end of the third quarter, Tesla China’s registrations may help determine whether the company could catch up to its 2024 numbers this year. 

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