Tesla Stock: Premium Models See Price Hike Amid Earnings Miss

Tesla's strategic repositioning in the premium segment has materialized through significant price increases for its high-end vehicles in Germany, with the Model S seeing an 18% jump to €109,900 and the Model X rising 15% to €114,900. This pricing strategy, accompanied by the reintroduction of free Supercharging for first-time owners, comes at a crucial time as the company faces pressure in its mass-market segment. The move appears designed to offset recent price reductions and strengthen its position in the luxury market, even as demand for the more affordable Models 3 and Y shows signs of strain.

Financial Performance Raises Concerns

The company's fourth-quarter 2024 results have fallen short of analyst expectations, triggering a notable decline in stock value. Despite a modest 2% increase in total revenue to $25.7 billion, vehicle sales dropped by 8%, partially offset by growth in energy storage and services. The adjusted earnings per share of $0.73 missed projections of $0.76, while gross margins settled at 16.3%. The stock has experienced a significant correction, falling below key technical support levels and currently trading around $350, marking a decline of over 20% from recent highs.