Analyst Applauds Tesla Price Cuts Claiming Musk Is Looking At The Future While Everyone Else Is Making Short Term Profits

Analysts' reactions to the price cuts announced by Tesla last week are mixed. Some believe the EV maker made the right move at the right time, while others are concerned about thinning gross profit margins.

Tesla made major price cuts to all its models in the US and to the Model 3 and Model Y in Europe, following similar price cuts in China and Asia a few days before. The company reportedly did so to boost demand and make sure that more of its vehicles qualify for the Inflation Reduction Act's new EV tax credit.

Analysts and investors had been predicting price cuts were coming as Tesla's inventory reportedly piled up. According to Wedbush analyst Dan Ives cited by Yahoo Finance, the cuts are the "right medicine at the right time."