Tesla Inc. [NASDAQ: TSLA] Decides To Cut Model Y SUV Price Amid Pandemic

Tesla Inc. [NASDAQ: TSLA], a California-based electric car maker has reduced the price of its Model Y SUV just four months after its launch. According to Tesla’s website, the starting price is now $49,990 as compared to the begining price of $52,990.

The decision of US electric car makers comes after pandemic weighs on the auto sector. Tesla is striving to maintain sales momentum in the COVID-19 pandemic. The reduction in Model Y price is the major cut Tesla has made to its vehicles roughly six weeks.

Earlier, it shaved $5,000 off the Model X and Model S and $2,000 off the model 3. Tesla shares soared after it delivered 90,650 cars in the second quarter, surpassing the anticipation of analysts.

Tesla’s stock surged 269% this year after that Bloomberg Index labeled CEO Elon Musk as the richest person who surpassed Warren Buffett as his riches surges more than $6 billion on Friday.

Shares of Tesla surged 10.78% and up +150.37 during the trading of Friday. It has a closing price of $1544.65. In the past 52-weeks of trading, it has fluctuated from a low of $211.00 and a peak of $1429.50. If we look at its profitability, it has a gross margin of 18.20%, a profit margin of -0.60%, and an operating margin of 2.80%.

Tesla had a trading volume of 23.13 million as compared to the average volume of roughly 14.45 million. It has moved up 632.06% from its 52-weeks low and 8.06% from its 52-weeks high. It has recorded the return on assets, equity, and investment of -0.40%, -2.10%, -0.90%, respectively. Turning our focus to liquidity, the current ratio for Tesla Inc. is 1.20. Similarly, its quick ratio is 0.90 and its debt to equity ratio is 1.52.