One of the most closely followed stocks on Wall Street is (NASDAQ: TSLA). The electric vehicle (EV) pioneer has earned a market-leading position in the automobile industry thanks to relentless innovation and a loyal customer base. Moreover, the influence Tesla has within the auto industry cannot be understated. Over the last several years, the EV space has welcomed a plethora of new entrants such as Rivian Automotive, Polestar, Lucid Group, and more.

With this rise in competition, Tesla has been forced to show its hand. Over the last year, the company has resorted to aggressive price cuts in order to maintain its market position and combat a two-way battle from increased competition and macroeconomic challenges such as inflation. While the strategy appears to be working, it's clear that Tesla needs to do more. After all, the EV market is still fairly nascent and Tesla's starting price tag upward of $40,000 could be considered a luxury purchase.

Continue reading

Source Fool.com