Tesla's Model Y Starting Price Drops Below Average US Vehicle Cost Amidst Margin Fear and Price Cuts.

Tesla's stock price fell as much as 3.5% to $155.03 in New York, pulling the company's market valuation below the key half-trillion dollar mark as investors increasingly fear its price-cutting plan will eat into profits. The company's profit margins plunged, displaying the impact of the aggressive price-cut strategy. The results sparked a flurry of price-target reductions by Wall Street analysts, who pointed to the risks to Tesla's premium valuation amid a steep erosion in profit margins.