Is this a good time to invest for the long term or do we expect more downside leading to the earnings call on Jan 25? In the short run, TSLA may take a modest hit to margins and even profits. But long term the price cut is good for TSLA since it reignites volume growth, which is the most important driver for TSLA stock.
Looking back, Apple cut the price of the original iPhone in 2007 by 30% just a few months after it originally launched. Steve Jobs wanted to sell more of them and capture more market share. It worked.
However, those who bought the original iPhone at the higher price before the price cut was offered a gift certificate on their website as compensation.
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The unhappiness has created alot of negative media for Tesla.
Will this have any negative effect on future demands?
Yes