Tesla shares close lower on Thursday, company reduces prices of standard range variants of Model 3 and Model Y

Tesla Inc (TSLA) has slashed the price of its base variants of the Model 3 sedan and the Model Y Sports-utility vehicle (SUV), while the price for the performance variants of those vehicles has been raised.

Lower vehicle prices come as the auto maker seeks to bolster its deliveries. Last year Tesla’s total deliveries stood at 499,550 vehicles compared with a consensus of analyst estimates of 481,261 vehicles.

Tesla shares closed lower for the fifth time in the past ten trading sessions on NASDAQ on Thursday. The stock went down 1.35% ($10.77) to $787.38, after touching an intraday low at $776.50 and an intraday high at $794.69 respectively.

Shares of Tesla Inc have risen 11.58% so far in 2021 compared with a 4.20% gain for the benchmark index, S&P 500 (SPX).

In 2020, Tesla Inc’s stock went up 743.40%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.

Tesla’s Model 3 Standard Range Plus is now priced at $36,990, down from $37,990 previously, according to the company’s website, while the Model Y Standard Range SUV is now priced at $39,990, down from $41,990 previously.

Meanwhile, the Performance variant of Tesla’s Model 3 will now cost $55,990, up from $54,990 previously, while the Performance variant of the Model Y SUV is now priced at $60,990, up from $59,990 previously.

Analyst stock price forecast and recommendation

According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $687.50, with a high estimate of $1,200.00 and a low estimate of $67.00. The median estimate represents a 12.69% downside compared to the closing price of $787.38 on February 18th.

The same media also reported that at least 15 out of 34 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 8 – as “Buy”. On the other hand, other 8 analysts had recommended selling the stock.