Okay, so Tesla is a big company that makes electric cars. They recently decided to lower the prices of some of their models in Europe and China. This means people can buy these cars for less money now. But there's a problem: when prices go down, sometimes people wait to see if they can get an even better deal later. That's what this article is talking about - will Tesla sell more cars because of the lower prices, or will people just wait for another sale? A man named Gary Black, who watches companies like Tesla very closely, thinks that lowering the prices might not be a good idea. He says it could make people wait for deals instead of buying right away, and that's not good for Tesla's business. Read from source...

1. The title of the article is misleading and sensationalized. It implies that Tesla's price cuts are a puzzle or a problem, rather than a normal business strategy to increase demand and market share. A more accurate title could be "Tesla's Price Cuts: How They Affect Demand And Customer Behavior".
2. The author relies heavily on the opinions of Gary Black, an analyst who has been consistently bearish on Tesla and often contradicts himself. For example, he lowered his earnings per share estimate after Tesla announced price cuts, but also claimed that the price cuts would not have a significant impact on demand or sales volume. This shows a lack of objectivity and credibility in the article.
3. The author fails to provide any evidence or data to support Black's claims that Tesla is "training its customers to wait for a deal" or that other automakers will follow suit with similar price cuts. These are speculative statements that do not reflect the current market realities or consumer preferences for electric vehicles.
4. The author does not mention any of the benefits or advantages of Tesla's price cuts, such as increased affordability, accessibility, and competitiveness in the EV market. These factors could actually boost demand and sales volume, rather than decrease them as Black suggests.
5. The author ends with a promotional link to Benzinga's Future of Mobility coverage, which is irrelevant and distracting for readers who are interested in learning more about Tesla's price cut strategy and its implications. This also creates a potential conflict of interest for the author, as they may receive commissions or referral fees from Benzinga for clicks or subscriptions.

Bearish

Summary of the article:
Tesla has recently cut prices for its electric vehicles in several European countries and China, which may affect its earnings per share. Analyst Gary Black criticized Tesla's management for being "value-destructive" and training customers to wait for deals instead of encouraging them to buy immediately. He also expects other automakers to follow suit with similar price cuts, leading to no significant volume growth.

Given the recent price cuts by Tesla, it is important to consider the impact on their earnings per share and stock performance. Here are my comprehensive investment recommendations based on the article you provided and my analysis of the situation:

1. Buy TSLA shares: The price cuts may initially hurt Tesla's earnings per share, but they can also help increase demand for their EVs in the long run by training customers to expect discounts. Additionally, the article mentions that other European automakers are likely to follow suit with similar price cuts, which could lead to zero incremental volume growth. This creates a competitive advantage for Tesla as they have already established a strong presence in the market and can benefit from the increasing demand for EVs.

2. Sell short other European automakers: As mentioned earlier, other European automakers are expected to follow Tesla's lead and offer price cuts to boost their sales volumes. This could lead to lower profit margins and increased competition in the market, which may not be favorable for these companies in the long run. By selling short their stocks, you can potentially benefit from a decline in their share prices.

3. Monitor Tesla's inventory discounts: Keep an eye on how Tesla adjusts its inventory discounts and price cuts in different regions to better understand the impact on their earnings per share and stock performance. This information can help you make informed decisions about when to buy or sell TSLA shares, as well as other related investments.

4. Diversify your portfolio: To minimize risks associated with investing in a single company or industry, consider diversifying your portfolio by investing in other sectors or assets that may not be directly affected by the price cuts and competition in the EV market. This can help you balance your potential gains and losses across various investment opportunities.

Please note that these recommendations are based on my analysis of the situation, but they do not guarantee any specific outcomes or returns. Investing always involves risks, and it is important to conduct your own research and consult with a professional financial advisor before making any investment decisions.