The newly exposed Tesla Model Inc. has failed. to encourage Wall Street, with some investors saying that the crossover vehicle was unveiled as infomercial who wanted to make a weaker mask Model 3 and grab money.
TSLA, -4.89% fell the shares nearly 4% on Friday, and they dropped more than 5% from the moment the Elon Musk CEO announced the vehicle's exposure date on Twitter. The crossover starts at $ 47,000 and requires a single deposit of $ 2,500, which is more than what Tesla wants at the time of the Model 3.
See also Tesla's Elon Musk Model Crossover , with a price tag of $ 47,000
At the late Thursday disclosure, Musk said he was hoping to sell more Model Ys than other Tesla vehicles together. Production of the car is expected to start at the end of 2020, and a cheaper standard car is expected to implement the factory floor in early 2021
“We are always concerned about the manufacturing timeline,” said Toni Sacconaghi with Bernstein. The late-2020 target appears to be similar to the Model 3 target, and ultimately the 9 to 12 month sedan, which he said.
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The more expensive deposit can awaken the linguistic sentiment of Tesla's money, Sacconaghi said. To order Model 3 when it was launched, a $ 1,000 deposit was required.
“Sam” orders could be shaped, ”said Joseph Spak at RBC Capital Markets. “The vehicle has not been available for nearly two years and consumers may be aware that early cashing down for the Model 3 has had few benefits,” he said.
The main issue is the extent to which the Model Y of the Model 3 will be simplified, which could be significant since SUVs have more crossover popularity than sedans, said Spak .
Unlike previous exposures, there was nothing else that many people expected, ”he said. Spak also questioned Tesla's strategy to show the vehicle now against its exposure closer to the start of production
Analysts Capital Capital Partners, led by Craig Irwin, had their own answer to that question: “Probably the launch of Model Y was carried forward to highlight a weak demand on the Model 3, ”they said.
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“Tesla must deliver unit growth to the stock for work, we think,” Roth analysts said.
“There was no surprise at night and it was like an economy for Tesla without the one most time he said, Jeffrey Osborne said at Cowen. There was nothing to avoid anxiety in terms of demand reduction, no renewal of Model S and Model X, and the results of the first quarter were not colorless.
“We believe that it was a fundraising and branding exercise. We don't see the new Model Y provoking high demands or enthusiasm for the Tesla brand, ”they said.
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