Tesla is set to hold an event on October 7, where investors expect the announcement of a more affordable model to help boost sales. This anticipation has led to a 3% increase in Tesla’s stock price in early trading on Monday. The company shared a short video on social media showcasing a vehicle with its lights on, hinting at the upcoming event.
Tesla had previously postponed the rollout of a lower-cost Model Y in the U. S., stating it would begin selling the car in the fourth quarter. This version will be about 20% cheaper to produce than the refreshed Model Y and may reach production of 250,000 units annually in the U. S. by 2026. Analysts believe the pricing will reveal how much Tesla has saved on costs and the potential for new demand.
Despite recent record deliveries, driven by EV purchases before the end of a tax credit, analysts expect sales to decline in the months ahead. The company has not launched a new mass-market vehicle in years and has faced challenges with the Cybertruck, including inventory discounts. A recall filing indicated that 46,096 Cybertrucks had been built since its launch in November 2023.Tesla delivers record EVs on buyer rush driven by U.S. tax credit expiry.
with information from Reuters