By
Svetlana Soroka
April 18th, 2024
Tesla Model Y is expanding into new markets. Meanwhile, the price of Tesla (TSLA) stock is falling. However, it is still over $900.
Tesla Inc (NASDAQ: TSLA) stock price was down at the close of last week’s trading session (-3.86%). This happened as Tesla will start delivering the Model Y outside the United States this week. At the time of filing this report, in the pre-market, Tesla (TSLA) stock price was $910.33 (-2.67%).
Things are topsy-turvy for Tesla at the moment. The Electric Vehicle (EV) manufacturer currently has the highest market value for automakers globally. With a current market capitalization of about $180 billion, Tesla seems to be on the path towards market domination in its niche. The problem however seems to be with its ratings. At the moment, Tesla (TSLA) stock has been downgraded by both Morgan Stanley and Goldman Sachs.
Tesla (TSLA) Stock Price Is Below $1,000
The rating problem has led to a slight decline in TSLA stock price to below $1,000. This doesn’t mean that Tesla stock is on the verge of a bear trend. It means though that the company’s shares are on the verge of a breakout. These events are those that precede the “calm before the storm”.
Sources say that Tesla Model Y is expanding first into Canada. This is the first country that the EV maker is expanding into in this regard. This model seems to be the “lucky one” in Tesla product lineup. In March, investors were excited of the Model Y’s launch six months ahead of schedule. American automotive and energy company has also indicated that the car has also contributed to its bottom line in this quarter. This is another “first” for the company. It is the first time that a new product is profitable in its first quarter.
CEO Elon Musk believes that the Model Y could perform better than the Model 3 in the marketplace and also could win more hearts than the latter. This has led to massive investments by Tesla (TSLA) in production capacity. It has indicated that the production capacity is up to 400,000 cars for both the Model Y and Model 3 to the Fremont factory.
Production capacity for the Model Y is being expanded in Shanghai and Germany and the deliveries on those two markets are going to be commenced in 2021.
Tesla Model Y Orders Are Expected to Expand
Elon has also indicated that he expects orders for the Model Y to reach 1.25 million units yearly. While this sounds very much like something not realistic, it could be possible taking into consideration the recent performances of the company and its ambitious CEO. With a delivery performance of 393,000 cars in the past year, it seems that the Model Y will be the gamechanger for Tesla. It all depends on how Elon and his highly imaginative team will be able to predict the trend for vehicle ownership in the next half-decade.
The EV industry seems to become a direct competitor to internal combustion cars in this period. This is another factor that could propel Tesla forward.
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