[ad_1]
The Y model recently revealed by Tesla Inc. failed to excite Wall Street as some investors said the unveiling of the crossover vehicle was unfocused to mask a weaker demand for Model 3 and a money grab.
You're here
TSLA, -4.78%
Shares fell nearly 4% Friday and are down more than 5% since CEO Elon Musk announced the date of the vehicle unveiling on Twitter. The crossover starts at $ 47,000 and to order one requires a deposit of $ 2,500, which is higher than what Tesla asked for when the Model 3 was released.
See also: Tesla's Elon Musk Unveils Model Y Crossover at $ 47,000
At the unveiling Thursday evening, Musk said it plans to sell more Y models than other Tesla vehicles combined. The production of the car is expected to start in late 2020 and a cheaper standard car is expected to come out of the factory in early 2021 and cost around $ 39,000.
"We remain concerned about the manufacturing schedule," said Toni Sacconaghi with Bernstein. The target set for the end of 2020 looks similar to that of Model 3. In the end, the sedan was delayed from 9 to 12 months, he said.
Read more: Tesla's creditworthiness remains "tense," says Moody's
The more expensive deposit could also stoke bearish sentiment on Tesla's cash position, Sacconaghi said. Ordering a model 3 at the time of its launch required a deposit of $ 1,000.
Orders under the Y model could be "neutralized," said Joseph Spak of RBC Capital Markets. "The vehicle has not been available for nearly two years and consumers may well realize that paying money earlier for Model 3 did not bring many benefits," he said. -he declares.
The biggest question is how model Y cannibalize model 3, which might be important, as crossover SUVs are more popular than sedans, Spak said.
Unlike previous disclosures, there was "no more one thing" that many expected, "he said. Spak also questioned Tesla's strategy of showing the vehicle now and unveiling it closer to the start of production.
Analysts at Roth Capital Partners, led by Craig Irwin, had their own answer to this question: "The launch event of Model Y was probably intended to divert the weak demand of Model 3," they said.
Related: That's why Tesla's Model Y announcement is "Bear Fodder"
"In our opinion, Tesla must now generate unit growth for the stock to work," Roth's analysts said.
The night "had no surprises" and played as an infomercial for Tesla without the extra moment, said Jeffrey Osborne in Cowen. There was nothing to ease the concern over slowing demand, no refresh of the S and X models, and no color around the first quarter results.
"We think the event was more of a fundraising effort and a branding exercise. We do not see the new Y model creating high demand or enthusiasm for the Tesla brand, "they said.
Tesla has fallen 15% in the last 12 months, while the S & P 500
SPX, + 0.53%
gained 2.9% and the Dow Jones Industrial Average
DJIA, + 0.53%
gained 4.1%.
[ad_2]
Source link