What Is Driving Tesla Stock Lower Ahead Of Q1 Results?

Tesla, Inc. TSLA stock slipped further in premarket trading on Wednesday, dragged down by another round of automaker’s price cuts.

The Elon Musk-led company updated the prices of all Model Y variants and the base model Model 3 car in the U.S. late Tuesday. Model Y prices were lowered between 6% and 9%, with the cheapest Model Y now costing $46,990 before the $7,500 EV tax credit. The price of the rear-wheel drive Model 3, which is now eligible for only half of the EV tax credit, was lowered by 4.8% to $39,990.

The move is expected to intensify investors’ worries concerning margin erosion.

Tesla is scheduled to release its first-quarter results Wednesday after the market close, with analysts modeling the smallest revenue growth since the second quarter of 2020. The consensus estimate also calls for a decline in earnings per share from $1.07 to $0.85.

See Also: Cybertruck Updates, Price Tweaks, Dividends And More: Key Questions On Tesla Investors’ Minds Before Q1 Results

If the stock fails to hold support at its 200-day moving average of $180, it could pull back toward its mid-March lows of around $164. On any potential upside, the stock could stall at its psychological resistance of $200. Further up, the $207 level could serve as resistance.

Price Action: In premarket trading on Wednesday, Tesla shares were down 1.89% at $180.83, according to Benzinga Pro data.

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