another automaker that we are watching this morning we talked about the UAW stripe so right now we want to focus on Tesla because shares of Tesla they're off just about two percent Goldman Sachs lower their profit forecast for the EV maker saying that recent price cuts are likely going to weigh on overall profits something that we've talked about now for several months at Tesla there was also a report out from the Wall Street Journal saying that Tesla is in early talks with Saudi Arabia to set up a manufacturing facility in the country now that is according like we just said to a report here from the journal let's first start with what Goldman has to say Brad about Tesla because they're echoing what many analysts have been warning about now for several months the fact that Elon Musk and Tesla have lowered the prices numerous times on their vehicles it's going to pressure margins here at least in the coming quarters they're doing in theory to boost demand for their cars whether or not that turns out to be a good move we'll see by the Numbers yeah and I think for what we're looking for from Tesla at this point in time and and we've got to remember for the broader EV landscape too that there's so much investment that's being put forward in meeting some of these lofty goals whether it's Ford or GM but for Tesla and the Head Start that they do have right now it's about making sure that they secure their ecosystem and so with that in mind what does this ecosystem look like it means getting people into a Tesla vehicle whether it be Mass model or perhaps getting them to matriculate if they're already in a mass model up to one of the higher end more profitable the s or the X even though the Lion's Share of orders are the three and the Y at this point in time and so that being really their approach and making sure that you get people into the brand to start off and then layer on some of the other services some of the other kind of if you will member type of features that many of the other automakers Legacy automakers have gotten people into the vehicle and then just said okay cool we could trade in we can trade up and we can make sure that you stay with our brand for a longer period of time that's the relationship that Tesla's trying to put forward over an extended period and in several different markets as well here right now too and that's becoming more evident as of some of the reports this morning as well it's extremely evident here but again we're still looking at shares under pressure at least for now in early trading off just about two percent
