Tesla’s recent price cuts to its lineup of vehicles could be a major boon for the company this year, according to Bank of America analysts. In a note released on Tuesday, the analysts noted that Tesla’s move would likely result in higher sales volume growth in 2020.
The price cuts come as part of Tesla’s effort to make its cars more accessible and affordable for consumers. The company has reduced prices across all models by up to 6%, with some models seeing even larger reductions. This is expected to help boost demand from customers who may have been previously priced out of owning one of Tesla’s electric vehicles (EV).
The Bank Of America analysts also highlighted how these lower prices could help increase market share for EVs overall, as they become more competitively priced against traditional gasoline-powered cars and trucks. They believe that this shift will lead not only increased sales volumes but also improved margins due to economies scale associated with higher production levels and greater efficiency gains from automation at their factories .
In addition, the bank believes that these lower prices will encourage new buyers into EV ownership who may have otherwise been hesitant about making such an investment before now – potentially leading them down a path towards becoming repeat customers over time too .
Overall , it appears that Tesla’s decision is already paying off – both financially and environmentally - which should bode well for their future prospects going forward .
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