Here are the stories that shifted the actions of the electric vehicle giant on Monday morning.
Tesla is already reducing the price of the model Y
During the weekend, Electrek reported that Tesla cut the price of its Model Y crossover SUV by $ 3,000, suggesting that demand for its latest model was lower than expected.
The starting price for the Model Y is now $ 49,990, down from the $ 52,990 Tesla had charged since the start of electric crossover deliveries in March.
The price drop for Model Y follows Tesla’s cuts to the US starting prices for its other three models in May. At that time, about a month before the end of the second quarter, Tesla cut the prices of its flagship S and X models by $ 5,000, and the price of its smallest Model 3 sedan by $ 2,000.
Some analysts saw the price cuts in May as a sign of lower demand. If so, they were the drug Tesla sales needed: the company reported deliveries of 90,650 vehicles in the second quarter, a solid result.
Roth Capital expects Tesla to launch new small EV soon – in India
In a note on Monday morning, Roth Capital analyst Craig Irwin – a longtime skeptic of Tesla – raised his rating on Tesla stocks to neutral, sell, and raised its price target to $ 750 in instead of $ 350.
Irwin’s note was not just a question of an analyst raising his hands in the midst of the incessant rise in action. There is an intriguing case here: Irwin wrote that his checks show that Tesla’s preparations to enter the Indian market are progressing and that India has upside potential similar to that of China for the electric vehicle manufacturer. .
While auto investors who know the Indian auto market may be skeptical – it’s very Price-sensitive and at first glance, Tesla does not have the right products to appeal to Indian buyers – Irwin wrote that his contacts had told him that Tesla planned to launch an electric mini-car in the relatively near future. Such a product, which Irwin says will be of comparable size to a Mini Cooper or a Fiat 500, could open a new addressable market for Tesla in India which could be larger than the model 3 market in Europe, he wrote. .
Adam Jonas: Tesla’s dominance in EV may be nearing completion
Another analyst who was once one of the loudest Tesla bulls on Wall Street is taking a more skeptical tone these days. In his Monday morning note, Morgan Stanley analyst Adam Jonas continued his recent string of cautious comments on Tesla, writing that he thinks Tesla investors “underestimate scale and momentum” of electric vehicle competition that Tesla will soon face.
Tesla investors tend to ignore (or completely ignore) the massively funded electric vehicle efforts underway in companies like Volkswagen (OTC: VLKA.Y) and General Motors (NYSE: GM). But it is more difficult for them to count on the start-up of electric vehicles Rivian, which carried out a capital increase of 2.5 billion dollars last week.
As Jonas pointed out in Monday’s note, Rivian, whose early investors understand Amazone (NASDAQ: AMZN) and Ford Motor Company (NYSE: F), has now raised $ 6 billion, and Amazon, along with Rivian, appears to be taking significant steps to push for the adoption of zero-emission technology in its ecosystem. (Rivian has agreed to build a fleet of electric pickup trucks for the online retail giant.)
In other words, writes Jonas, “the era of Tesla’s virtually undisputed domination [in electric vehicles] can be numbered. It maintained its previous underweight and target price of $ 740 for Tesla stocks.
Wedbush: Battery Day could boost Tesla stock
In another note from Monday, Wedbush analyst Daniel Ives argued that Tesla’s next Battery Day, now set for September 22, could be a “major positive catalyst” for action, as the company is likely to introduce new technologies that investors will find compelling.
In the short term, Ives thinks Tesla’s second-quarter earnings report could also help. He wrote that Tesla’s total deliveries in the second quarter of xx may have been enough to generate a profitable bottom line, which would be a “major achievement” amid the stresses of the COVID-19 pandemic.
Given this second quarter result, Ives believes Tesla may be able to beat the consensus forecast for the full year of approximately 400,000 deliveries of approximately 50,000 units.
Despite his optimism, Ives maintained his neutral rating on Tesla and his previous price target of $ 1,250.