At the beginning of 2019, the government-set sales threshold for Tesla Model 3 customers to 200,000 vehicles was crossed, which is how the federal tax credit for buyers fell from 7,500$ to 3,750$, cut by half.

In the meanwhile, Tesla has been taking more than several steps towards cutting the prices of their car models, following the drops of tax credit as a necessary step to make in order to meet the new market demands based on the tax credit changes.

Since the beginning of the year, Tesla company has cut the price of their Model 3 twice already with the reduction of taxes at the begging of January 2019, which means that Tesla stocks are more likely to feel the impact of these changes in the following period.

Will Tesla stock price go up with the price cut for Model 3?

Will Elon Musk’s Price Cuts in Tesla Model 3 Bring Rises to Tesla Stocks in the Market?

The price of all vehicles produced by Tesla on the head with Elon Musk was cut by 2,000$ at the beginning of 2019, once again followed with a price cut of the additional 1,100$ at the beginning of February.

According to analysts looking into the recent price changes and the newly reduced rates for federal tax credits, Tesla stocks are looking at rises in the course of the following year.

Prices for models 3, X and S have been reduced, expecting to see a rise in sales for Model 3 as the company increased their production by double, increasing the car production from 5,000 units per month to 10,000 units for the same period of time.

Models S and X are expected to have a limited growth in oppose to Model 3, further indicating that the net income margin will trend higher during the year 2019 and 2020.

As far as earnings per share concerned, Tesla is precited to go up 27 times its current price in 2020.