The newly announced Model Y of Tesla Inc. has failed to wake up on Wall Street, with some investors saying that unveiling a crossover vehicle is being played like an infomercial sought to mask the weaker Model 3 demand and a cash grab.
shares fell almost 4% on Friday, and down more than 5% from the moment Chief Executive Elon Musk announced the date of the unveiling of the car on Twitter. The crossover starts at $ 47,000 and ordering one requires a $ 2,500 deposit, which is more than what Tesla required at the time of the Model 3 demonstration. See also: The Eles Musk of Tesla opened the Model Y crossover, with a $ 47,000 price tag
At the opening of Thursday, Musk said he expects to sell more Model Ys than Tesla's other vehicles. Car production is expected to begin in late 2020, and a standard-range, cheaper car is expected to release the factory floor in early 2021
"We are concerned about the manufacturing timeline," Toni Sacconaghi told Bernstein. The late-2020 goal will appear like Model 3, and eventually the sedan is delayed by 9 to 12 months, he said.
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The more expensive deposit may also arouse bearish sentiment in Tesla's cash situation, Sacconaghi . Ordering Model 3 at the time of its launch requires a $ 1,000 deposit.
Model Y commands can be "mute," said Joseph Spak at RBC Capital Markets. "The car is not available for almost two years and consumers can realize that lowering the money early for Model 3 does not give much benefits," he said.
The bigger question is how much Model Y can put in Model 3, which can be significant because the crossover SUV is more popular than sedans, Spak said.
Unlike previous unveilings, there is "something" that many expect, "she says. Spak also asks Tesla's approach to showing the vehicle today compared to its release near the start of production.
Analysts at Roth Capital Partners, headed by Craig Irwin, have their own answer to that question: "The launch of Model Y is likely to be expected to interfere with the poor demand for Model 3," they say. .
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"Tesla should now deliver the unit's growth to stock, in our view," says analysts of Roth.
The night was "no surprise" and played like infomercial for Tesla without a moment, said Jeffrey Osborne in Cowen. There is nothing to stop anxiety around the demands of the demand, no Model S and Model X refresh, and colorless in first-quarter results.
"We believe that the event is more than a capital effort and branding exercise. We can not see the new Model Y that causes high demand or enthusiasm for the brand Tesla," they say. .
Tesla's shares have dropped 15% over the last 12 months, while the S & P 500
SPX, + 0.58%
earned 2.9% and the Dow Jones Industrial Average
DJIA, + 0.59%
has gained 4.1%.