High-profile investor makes a prediction Tesla fans will love
If you're still waiting for a Tesla model you can afford, this is good news.
If you've been watching Tesla (TSLA) - Get Free Report over the last year, you may feel skeptical about the direction the EV company is heading into in 2024 (well, unless you're famed Tesla bull Cathie Wood, that is).
But CEO Elon Musk may have some plans to shake up the company in the new year, at least if investor and famed Tesla bull Gary Black is to be believed.
Related: Chinese Tesla rival launches fast-charging electric vehicle
Black tweeted some thoughts on Tesla on Jan. 1, saying that Tesla may "realign its US pricing matrix soon" to offset the loss of the $7500 EV credit that owners of the M-3 RWD and M-3 LR enjoyed before the credit was lost going into 2024 (a fate many other electric vehicles also suffered).
We could see $TSLA realign its US pricing matrix as soon as this week to fix the distortions caused by losing the $7,500 EV credit on M-3 RWD and M-3 LR, which if left unch’d would lead to M-3 RWD and LR being priced ABOVE respective M-Y RWD and LR trims, and M-3 Perf being…— Gary Black (@garyblack00) January 1, 2024
Black goes on to offer what he calls an "uninformed guess," saying he thinks M-3 RWD and LR could drop in cost by as much as $4,500, while M-3 Perf and all M-Y trims could go up by $1,500-$2,000.
Related: Tesla just got beat out by another growing competitor
Black also shared a chart tracking Tesla's US pricing matrix, which he credits to Troy Teslike, an X user that tracks Tesla production and delivery estimates.
2/ My uninformed guess: We could see $TSLA price reductions of up to $4,500 on M-3 RWD and LR, offset by $1,500-$2,000 price increases on M-3 Perf and all M-Y trims. This would be roughly revenue neutral and re-align the
US pricing matrix as it was before 1/1. I believe TSLA… pic.twitter.com/T9wRweBxbC— Gary Black (@garyblack00) January 1, 2024
"I believe TSLA will ultimately find a way to recapture at least 1/2 of the $7,500 EV credit lost on M-3 RWD and LR as 4680 battery production continues to ramp, which would allow more Panasonic 2170 cells made," Black said.
Despite making several major price cuts to its lineup in 2023 and the stock navigating some highs and lows in 2023, Tesla saw it's share of successes as well, including the launch of the long-teased Cybertruck, joining the Magnificent Seven, and talk of the company hitting a $1 trillion market cap in 2024.
What's Your Reaction?
