“Bitcoin is, in our opinion, the smartest move at the right time for Tesla, but on the downside, playing with coconuts and risks and volatility has been added to the Tesla story,” said Daniel Ives, technology analyst at Wedbush Securities. Tesla part.
Model Y prices
Last Thursday, Tesla reduced the price of the cheapest version of its Model Y and its top-selling Model 3 cars by $ 2,000 each. That raised the price of the “standard” Model Y, one that could drive 244 miles at a cost, to $ 38,490 – and the standard Model 3 to $ 34,590.
But over the weekend, the cheapest “standard series” version of the Model Y from Tesla’s sales website disappeared, leaving only the more expensive long-distance and performance versions of the SUV. Tesla did not explain its decision.
“We consider the plausible reasons to be one of two: the mix was too much in the direction of the cheaper variant, and so it would kill their margins, or more likely there was just not much demand for the lower variant,” he said. Gordon Johnson of GLJ Research, one of the more clumsy critics of Tesla shares. He said the recent price reductions and other price reductions show that Tesla vehicles do not have the demand that its fans are demanding.
“Tesla cannot keep its current factories at capacity without … price reductions,” Johnson said Monday.
Increased competition
Established carmakers have recently set ambitious targets for their own EV sales.
These efforts are making some Tesla investors nervous, Ives said, although he believes there will be enough of a move to EVs for several winners among global carmakers.
Investors have put themselves ahead
During the conference call on January 27, Musk also spoke about a shortage of batteries needed to power electric vehicles. He said that even with Tesla’s own stock of batteries and the planned expansion of battery production, the company is trying to find the batteries it wants to build more vehicles.
‘The fundamental limitation on electric vehicles at present is generally the total availability of [battery] cells, “he said. Musk said, for example, that Tesla would already start manufacturing with a semi-tractor if the batteries were available to do so.
Shares are still much higher
Tesla shares rose 743% in the market in 2020 as investors accepted the idea that the future of the automotive industry would be electric. Tesla remains by far the most valuable carmaker in the world, with a market value far higher than the eight largest carmakers combined.
Some investors believe Tesla’s share has flown too high. Yet many analysts believe Tesla will bounce back. Ives has a 12-month target price of $ 950.
Nevertheless, he has a warning: ‘This is’ again a seat belt for Tesla’s stock with more volatility on the horizon’, Ives said.