Tesla shares fell Friday following the electric-car maker’s Model Y unveiling in California.
Wall Street analysts were underwhelmed by Thursday’s reveal.
CEO Elon Musk said the new model will outsell the Model S, Model X, and Model 3 combined.
Watch Tesla trade in real-time.
Tesla shares fell as much as 5% Friday as Wall Street analysts were underwhelmed by the electric-car maker’s unveiling of its Model Y SUV.
Some analysts were concerned that the Model Y could claw demand away from the Model 3.
“Overall, we found the event somewhat underwhelming with no major surprises,” Emmanuel Rosner, an analyst at Deutsche Bank, said in a note to clients on Friday.
And Jed Dorsheimer, a bullish Tesla analyst at Canaccord Genuity, added: “Tesla unveils the Model Y but event may fall shy of whisper expectations.”
Indeed, Tesla didn’t reveal a “one more thing” that many anticipated in addition to the Model Y unveiling itself, said Joseph Spak, an analyst at RBC Capital Markets. Spak said the model’s impact on the Model 3 could be “significant” as crossover demand around the world has exceeded that of sedans.
“Which begs the question, why show the vehicle now?” he wondered in a note to clients. “We would have thought the reveal would have been closer to start of production. Will some potential M3 buyers wait?”
Still, Musk said the Model Y could outsell the Model S, Model X, and Model 3 combined. The standard version of the Model Y is set to arrive in 2021, and will begin at $39,000. The three pricier versions of the vehicle will start between $47,000 and $60,000, and will begin shipping in 2020.
Craig Irwin, an analyst at Roth Capital Partners, has observed a “fundamental shift” in the way Tesla shares have traded recently.
What once traded like an emerging growth …read more
Source:: Business Insider