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Tesla’s Bold Price Cuts Put Lofty Valuation to Test

  • Investors worried about hit to profit after several price cuts
  • Margins the main focus in first-quarter results due Wednesday
Tesla Cuts Prices on Model Y, 3 Ahead of Earnings
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A central pillar of Tesla Inc.’s pricey valuation is about to face a reckoning.

Results from the electric-vehicle maker after markets close on Wednesday are set to show what impact a series of aggressive price cuts have had on the hefty profit margins that have long been such an attraction to investors.