Why Investors Pushed Tesla Shares Lower Today
Tesla (NASDAQ: TSLA) made a big growth investment over the weekend, but that's not the news driving its stock price Monday. The electric vehicle (EV) maker's shares dropped by as much as 5% in morning trading, and remained down by 1.4% as of 12:55 p.m. ET.
Investors may have been pleased to hear that Tesla plans to expand its megapack battery storage business with a new factory in Shanghai, China, but on Monday morning, that's not what they were focused on. Tesla announced more price cuts for its EVs, and that might mean its profit margins will disappoint analysts. With numerous dynamics shifting essentially simultaneously, it's hard to gauge how Tesla's pricing changes will affect its bottom line.
Image source: Tesla.
Source Fool.com
