SUMMARY
- Tesla’s stock slips 5.1% amid new Model 3 launch.
- Full Self Driving (FSD) software sees a price cut from $15,000 to $12,000.
- The price adjustment could impact Tesla's 2023 gross profit projections.
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Tesla's stock experienced a hiccup, and it wasn't just because of new hardware launches. Software might be the sneakier culprit here. During a particularly gloomy Friday, Tesla's stock declined by 5.1%, contrasting with the S&P 500's marginal climb of 0.2%.
While the buzz was about the new Model 3 version launched in China and Europe, this wasn't the news that raised eyebrows. Yes, the revamped Model 3 boasts a chic interior and an improved driving range.
But, the twist in the tale came when Tesla slashed the price of its Full Self Driving (FSD) software from $15,000 to $12,000. Elon Musk, the CEO, has always envisioned this feature transforming Tesla vehicles into fully autonomous ones.
Despite this, the price drop seemed a tad sudden, especially when Musk himself declared the previous price "low" considering the value-add to the car. Is this a strategy to lure more users to test the FSD? Or is it a reflection of lackluster penetration rates?
The answers remain hazy, but what's evident is that Tesla is willing to play a high-stakes game, even if it means risking a chunk of their projected gross profit for 2023.
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