Tesla shares slide 3%

Tesla’s shares tumbled more than three per cent in pre-market trading on Monday, as concerns about profitability overshadowed the company’s recent global price cuts, as reported by Reuters.

This decline comes on the heels of Tesla slashing prices on its Model 3 and Model Y vehicles by up to $2,000 in key markets like the US, China, and Germany, as per the statement.

This aggressive move is viewed as an attempt to boost flagging demand amid rising interest rates.

Investors are on edge as Tesla prepares to release its quarterly earnings report on Tuesday. Analysts predict the company will report its first revenue decline and lowest gross margin in nearly four years, according to LSEG data.

The upcoming earnings report follows a tumultuous period for Tesla. Last week, CEO Elon Musk laid off 10 per cent of the workforce and emphasised the importance of autonomous driving technology.

This focus shift, coupled with Musk’s recent public pronouncements, has left investors yearning for a clearer strategic vision.