TSLA Stock Up 3% in Pre-market as Tesla Lowers Price for Its Model Y by $3000

UTC by Teuta Franjkovic · 3 min read
TSLA Stock Up 3% in Pre-market as Tesla Lowers Price for Its Model Y by $3000
Photo: Depositphotos

Tesla has reduced the price of its Model Y SUV by $3,000 after cutting prices of the Model 3, Model S and Model X up to $5,000 in May. Meanwhile, TSLA stock is 3% up in the pre-market.

Tesla Inc (NASDAQ: TSLA) decided to lower the price of another vehicle. This time it’s all about the Model Y, an electric SUV the company started shipping in March. The long-range all-wheel-drive version of the car you can now buy for $49,990, meaning $3,000 less than what it was before. In May, Tesla also cut prices for some other of its models, including high-end vehicles like the Model S sedan and the Model X SUV.

Meanwhile, on Friday Tesla stock closed at the price level of $1,544.65 (+10.78). Today in the pre-market, the stock is up another 3%, at $1,593.00.

From the company, they said they decided on this step in order to attract buyers in spite of the economic breakdown caused by the coronavirus outbreak. The traditional big three U.S. automakers, Ford Motor Company (NYSE: F), General Motors Company (NYSE: GM) and Fiat Chrysler Automobiles NV (BIT: FCA), decided to go with 0% financing rates, in addition to delayed or longer-term payment options. Some other carmakers decided to go with some new stimulus and payment plans to attract new buyers and also keep the old ones from defaulting on loans.

Tesla to Become Completely Autonomous Before the Year Ends

At the beginning of this month, Tesla said it delivered 90,650 vehicles in the second quarter, which represents a 4.8% fall due to the coronavirus outbreak and interruptions in production at its main U.S. factory for several weeks, but still better than analysts’ expectations. Most of the deliveries, or 80,050, were Model 3 and Model Y, while the remaining 10,600 were its higher-end Model S and Model X.

Meanwhile, Tesla’s founder Elon Musk said earlier that the company will be able to make its vehicles completely autonomous before the years’ end. He added that it was already “very close” to achieving the basic requirements of this “level-five” autonomy, which requires no driver input.

Tesla’s current, level-two Autopilot still needs the driver to stay on alert and be ready to act, with both hands on the wheel. However, Musk said that a future software update could activate level-five autonomy in the cars, without the need for new hardware.

IHS Markit analyst Tim Urquhart commented that level five autonomous driving was the “holy grail” of the industry.

He stated:

“It’s a typically bold claim by Mr Musk. Even if Tesla can reliably roll out the technology in a production environment, the regulatory environment in all the major markets is way behind allowing completely autonomous vehicles on the road.”

Urquhart added that it’s true that some Tesla users were already misusing the current technology.

He noted:

“I’ve always slightly questioned the naming of the Tesla system. The fact that it’s called Autopilot, when it’s only a level-two system, is I think problematic. There are no basic requirements with level five – it has to be absolutely bulletproof, fool-proof, tested in real world environments to the nth degree.”

If you want to find out other updates from the transport industry, just follow the link.

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Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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