Tesla Motors Inc (TSLA) Reduced Model S Price Because Of Sales Problems: Matt Miller


In a program on Bloomberg, Former Chrysler Chairman and CEO Bob Nardelli and Bloomberg’s Matt Miller talked about Tesla earnings and how the company is reshaping its strategy. Tesla Motors Inc (NASDAQ:TSLA) has been currently involved in a war of words with The Wall Street Journal in regards to sales figure. Elon Musk claims that Tesla has hit record sales, but the journal insists that the company’s sales are declining in the US.

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Nardelli said that Tesla Motors Inc (NASDAQ:TSLA)’s CEO must be given full credit of the formidable innovation he has brought to the table. He has changed the market trends by his electric cars and the company is rolling out state of the art innovative cars in the market.

Miller also agreed that there is a dwindling demand for Tesla Motors Inc (NASDAQ:TSLA) and this is precisely the reason why the company has depleted the prices of Model S. Although Elon Musk has labelled this price cut as a discount for the customers, but the reality of the matter is a little different. This price cut, Miller thinks is not merely to facilitate the customers, rather there is a depiction of company’s sales problem in this step.

Miller and Nardelli agreed that the price cut may also be because of the upcoming models of Tesla Motors Inc (NASDAQ:TSLA). Everyone is waiting for the new car and this trend diminishes the sales of the existing cars, creating a trend of price cut in the models. Nardelli said that he never bought Tesla Motors Inc (NASDAQ:TSLA). He thinks that he does not have a taste for electric cars yet.

 Tesla Motors Inc (NASDAQ:TSLA) shareholders includes Daniel Benton’s Andor Capital Management which reported owning 1.25 million shares in the company by the end of the second quarter.

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