Tesla's Discount Move Suggests a Troubling Short-Term Mindset
Tesla (NASDAQ: TSLA) has been a big drag on the Nasdaq Composite recently, with investors in the electric vehicle (EV) company having suffered losses of close to 70% from the stock's best levels of the past year. There have been plenty of factors affecting the electric vehicle pioneer's stock lately, many of which have little to do with its core business.
However, Tesla stock took another hit on Thursday, falling 9% to reach its lowest level since 2020. The reason behind Thursday's decline for the share price stems from a strategic move from Tesla, and the decision that the business made reflects a way of thinking that seems unnecessarily focused on short-term factors at the expense of longer-term profit.
Tesla shares responded negatively in part to news from the EV automaker that it would offer extensive discounts for a brief period. For customers who take delivery of a Tesla Model 3 or Model Y vehicle between Dec. 21 and Dec. 31, the company will throw in free charging for 10,000 miles. In addition, those who purchase the mass-market Tesla vehicles will get a $7,500 discount.
Source Fool.com
