AP Explains: What Tesla price cuts mean for demand

Описание: (3 Jan 2019) FOR CLEAN VERSION SEE STORY NUMBER: apus109778

Tesla made about 9,300 more vehicles than it delivered last year, raising concerns among industry analysts that inventory is growing as demand for the company's electric cars may be starting to wane.
If demand falls, they say, the company will enter a new phase of its business. Like other automakers, Tesla will have to either cut production or reduce prices to raise sales. A drop in demand could also curtail the company's earnings and jeopardize CEO Elon Musk's promise to post sustained quarterly profits.
On Wednesday, Tesla did cut prices, knocking $2,000 off each of its three models. The company said the cuts will help customers deal with the loss of a $7,500 federal tax credit, which was reduced to $3,750 this month for Tesla buyers and will gradually go to zero by the end of 2019.
"They're kind of at a crossroads now," AP Reporter Tom Krisher said. "They either have to decide whether they want to cut production to limit the supply or to cut their prices to stimulate demand and get more sales."

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