Tesla investors react, as car owners slam Elon Musk over 20% EV price cut

Fear and greed are factors that control the price movement of a stock, but at the end of the week, the former controlled the decision of Tesla investors, after owners of the electric vehicles criticised Elon Musk for cutting prices of the firm’s cars.

Musk, the Chief Executive Officer and majority shareholder of Tesla, had cut prices of its EVs to increase sales amid slow demands.

Tesla’s Model Y base price was dropped by 20 per cent and Model S Plaid was cut by 14 per cent. Six other EVs manufactured by the carmaker also saw price cut.

The price cut didn’t go down well with existing Tesla car owners, as they slammed the company for slashing the price after they had already purchased.

A Tesla car owner, Marianne Simmons, who bought the Model Y at about $77,000, in a Canada Today report on Saturday, said she lost $13,306 in investment on the car after the price cut.

Read also:Elon Musk sets Guinness record, as Tesla investors drop his wealth by $182bn

“I feel like I got duped. I feel like a got taken advantage of as a consumer,” Simmons said, adding, “Right off the bat, I’m out $13,306. It’s such a large reduction that it’s going to affect a lot of people who just bought a vehicle.”

In a market analysis, Ripples Nigeria gathered that investors reacted negatively to the critcism that trailed the price cut that came during the week.

As fear gripped holders of Tesla share, the firm’s stock price plummeted by -0.9 per cent on Friday to $122.40, from pre-price cut level of $123.56 on January 12, indicating low confidence among investors in the stock market.

Note that the price cut in Tesla vehicles is meant to increase sales and increase earnings, which in turn, is supposed to boost investors’ confidence in Tesla’s future growth prospects.

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