No sooner did Elon Musk put a raucous 2018 behind him than a new worry erupted for Tesla Inc.: a potential ceiling in demand for its cars.
Tesla’s shares plunged on the first day of 2019 trading after the company unexpectedly announced it was cutting prices by $2,000. The move, designed to partially offset a reduction in the federal tax credit for its electric vehicles, underscored the key challenge in what is likely to be a pivotal year for the company and its chief executive officer. The carmaker also reported fourth-quarter deliveries that fell just short of analysts’ estimates.