'That's right, if you give a discount, it doesn't sell.'
This might be the best time to buy Tesla Inc's Model 3 and Model Y electric cars (EVs) which are discounted by $7,500 in the United States (US).
However, the news is like 'can' to the ears of investors as it describes Tesla facing the problem of weak demand due to weak growth.
It also indirectly triggered a sell-off in Tesla shares to fall 11% on Wall Street, nearing the lowest level since Elon Musk's purchase of Twitter.
It turns out the decision to grant a discount, which is rare, has not been welcomed by investors as the company grapples with supply chain disruptions and inflation.
ROTH Capital Partners' senior analyst, Craig Irwin, commented that price cuts to increase the number of shipments are not convincing especially with the emergence of increased competition.
As a result, some analysts are seen downgrading Tesla for this quarter as growth is seen to slow down in the US and China.
In the meantime, the discount given can also be felt by Canadians with both models receiving a discount of $5,000 and China by $860.
Tesla previously announced in October that it was possible the company would miss its delivery targets this year but denied demand problems after its earnings hit.
However, recent news reinforces those concerns with investors indeed 'heated' over Musk's excessive focus on Twitter.
