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Tesla Pricing Concerns Drive Rash of Downgrades

Por: MarketWatch Business April 29, 2023

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There are good reasons to cut prices, Houchois notes, including faster EV penetration and increasing share. But holding a stock in a price war is rough. Then there’s pricing elasticity—the change in demand driven by a change in price. If prices drop 10%, and demand rises 10%, elasticity is at one. But elasticity changes over time and at different pricing levels. Eventually, more price cuts have less impact on sales, a dynamic he fears for... + full article



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