Tesla share price down 5% after unveiling Model Y SUV
The car company's stock is down after revealing its new SUV.
Tesla share price is down 5% after the car company revealed its new Model Y SUV. The car is expected to be released to the public in 2021, but can ordered now by customers.
What features are in the Tesla Model Y?
The Tesla Model Y will cost between $39,000-$60,000 and will be 10% bigger than the Model 3 sedan. The SUV will seat seven people and four versions of the vehicle will be available. There is also a self-driving option that customers can purchase for $5,000. Tesla’s founder, Elon Musk, said that he expects the car to be fully autonomous when it is released in 2021.
‘My guess as to when we would think it is safe for somebody to essentially fall asleep and wake up at their destination? Probably towards the end of next year. That is when I think it would be safe enough for that,’ said Musk.
What did Elon Musk during the Model Y unveiling?
Musk noted that the last year at Tesla was a challenging one to meet the deadlines of producing the company’s electric cars. The Model Y is being unveiled about three years after it was promised to consumers.
‘2018 felt like aging five years in one. Honestly it was really intense,’ said Musk.
Musk had many controversies facing him last year. The US Securities Exchange Commission (SEC) wants to hold him in contempt for his controversial tweets. The company has also had volatility with its share price and high turnover with many executives leaving the corporation.
Why is Tesla share price down?
While the Model Y had a prominent launch, many Wall Street analysts were underwhelmed, which likely lowered Tesla share price. Jeffery Osborne, managing director at Cowan, felt that the Model Y SUV was reveal did not live up to expectations.
‘The Model Y underwhelmed us[Wall Street analysts],’ said Osborne.
Many analysts also noted that many of the Model Y used 75% of the same parts as the Model 3. Michael Harley, executive editor of the car analysis publication, Kelly Blue Book, was also unimpressed with the car.
‘It’s not groundbreaking, earth-shattering, revolutionary by any stretch of the imagination. ‘Obviously, Tesla is playing it safe, but it knows what its customers expect and what its customers like to buy. This is a very safe and conservative model, in terms of styling,’ said Harley.
Tesla’s stock is undergoing more volatility as the carmaker’s latest vehicle is revealed. Investors will be monitoring the company to see what will happen next with the electric car company.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
