Actions of Tesla (NASDAQ: TSLA) It opened the week at a higher level, as investors reacted to a series of news, including a report that Tesla may be preparing to launch a small, affordable electric vehicle for India.
Here are the stories that moved the shares of the electric vehicle giant on Monday morning.
Tesla is already reducing the price of the Model Y
Weekend, Electrek He reported that Tesla has cut the US price of its Model Y crossover SUV by $ 3,000, suggesting that demand for its latest model has been weaker than expected.
The starting price for Model Y is now $ 49,990, down from the $ 52,990 that Tesla had been charging since electric crossover deliveries began in March.
Are they marking Model Y sales? Tesla has just reduced the price of the compact crossover by $ 3,000. Image source: Tesla.
The Model Y price cut follows the reductions Tesla made to the starting prices of the other three models in the US in May. At that time, about a month before the end of the second quarter, Tesla cut the prices of its flagship Model S and Model X by $ 5,000, and the price of its smallest Model 3 sedan by $ 2,000.
Some analysts saw those price cuts in May as a sign of weaker 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 believes Tesla will soon launch a new small EV – in India
In a Monday morning note, Roth Capital analyst Craig Irwin, a long-time Tesla skeptic, raised his Tesla stock rating to neutral, since the sale, and raised his price target to $ 750 from $ 350.
Irwin’s note was not just a matter of an analyst raising his hands amid the relentless rise in shares. Here’s an intriguing case: Irwin wrote that his checks show that Tesla’s preparations to enter the Indian market are moving forward and that India has upside potential similar to China’s for the electric vehicle maker.
While automotive investors who know about the Indian automotive market may be skeptical, it is very Price sensitive and at first glance Tesla does not have the right products to interest Indian buyers: Irwin wrote that his contacts told him that Tesla plans to launch a mini electric car in the relatively near future. Such a product, which Irwin believes will be comparable in size to a Mini Cooper or Fiat 500, could open up a new addressable market for Tesla in India that could be larger than the market for the Model 3 in Europe, he wrote.
Adam Jonas: Tesla’s EV dominance may be near the end
Another analyst who was once one of Tesla’s strongest 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 series of cautious comments about Tesla, writing that he believes Tesla investors “underestimate the magnitude and momentum” of electric vehicle competition that Tesla will face soon.
Tesla investors tend to discount (or completely ignore) the massively well-financed electric vehicle efforts underway at companies like Volkswagen (OTC: VLKA.Y) and General Engines (NYSE: GM). But it’s harder for them to discount the new electric vehicle company Rivian, which completed a $ 2.5 billion capital increase last week.
As Jonas noted in Monday’s note, Rivian, whose previous investors include Amazon (NASDAQ: AMZN) and Ford engine company (NYSE: F), has now raised $ 6 billion, and Amazon, with Rivian, appears to be taking significant steps to drive adoption of zero-emission technology in its ecosystem. (Rivian has agreed to build a fleet of electricity delivery vans for the online retail giant.)
Simply put, Jonas wrote, “the days of Tesla’s virtually undisputed dominance [in electric vehicles] may be numbered.He maintained his previous underweight rating and $ 740 price target for Tesla stock.
Wedbush: Battery Day Could Boost Tesla Stock
In another Monday note, Wedbush analyst Daniel Ives argued that the upcoming Tesla Battery Day, now scheduled for September 22, could be a “major positive catalyst” for the stock, as the company is likely Showcase new technologies that investors will find compelling.
In the short term, Ives believes Tesla’s second-quarter earnings report could also provide a boost. He wrote that total xla deliveries in Tesla’s second quarter may have been enough to deliver a profitable result, which would be a “great feat” amidst the tensions of the COVID-19 pandemic.
Given that second-quarter result, Ives believes Tesla could be in a position to beat the full-year consensus forecast of approximately 400,000 deliveries in approximately 50,000 units.
Despite his optimism, Ives kept his neutral Tesla rating and his previous price target of $ 1,250.
