Spate of recent posts on Twitter by Tesla CEO Elon Musk is making market analysts wonder if customers are losing interest in the brand. Early last weekend he had again stated that it is soon to be launched crossover car Model Y will be revealed to the public on March 14, 2019. Though it could be a great vehicle analysts say that the timing of its launch is worrisome as recently Musk had tweeted that the firm is making considerable price cuts to its existing models. He also later announced that Tesla is closing down showrooms and cutting down on sales staff as it will move sales online.
As the firm also spent $1 billion last week to pay off debts these back to back announcements on social media is making both analysts and the share market jittery. Just last month it unveiled the low priced Model 3 which is available at $35000 and also announced price reductions on upgrades to its Autopilot system. It also announced price cuts for Model X and Model S cars after declaring that they will be sold online only to make them cheaper to buyers. These announcements led to sharp fall in its share by 8 % on Friday and by 3 % early this week.
These rapid changes suggest that Tesla is making efforts to sustain and strengthen the demand of its products that appear to be losing their sheen in Europe, US and China too. Analysts say that announcement of Model Y in quick succession of Model 3 at $35K suggests that it could have been triggered by low demand for Model 3. The price cuts on its other models namely X and S also suggest that demand for its products has softened in recent years. Investors in the past have expressed concern if Tesla can sustain customer interest in its products if they are priced so high.