Tesla Motors Inc: We Are Not Announcing Two Cars In March

Tesla stockBlomst / Pixabay

Tesla Motors was said to be planning to announcing two vehicles in March rather than just the expected Model 3. However, Tesla denied the report from Electrek in an emailed a statement to Ars Technica.

Model 3 or Model Y

In the emailed statement, the EV firm said, “Electrek is wrong. Unfortunately, they failed to check with us before publishing.”

On Thursday, Electrek said it could not confirm the source’s statements but referred to a presentation Tesla made at a Hong Kong meeting where it showed two vehicles: a sedan and a crossover vehicle.

“Yes, obviously, the artwork is simply a Model X and Model S under digital covers, but the fact that there are two cars to be unveiled adds a little more credence to what I’ve heard,” the report said.

The Model 3 is supposed to be the most affordable sedan from Tesla and is being eagerly awaited by followers and analysts. The crossover vehicle could be the Model Y, which Tesla CEO Elon Musk hinted about in October. JB Straubel, Tesla’s chief technical officer, previously indicated that the Model Y will be somewhat similar to the Model X but cheaper and based on the Model 3.

In October, responding to a tweet from a Model X fan on the falcon-wing doors, Musk said the company will launch a Model 3 and a Model Y and that one of them will have falcon-wing doors. According to Electrek’s source, the Model Y will cost more than the Model 3 by $5,000. The price difference is similar to the difference between the prices of the Model S and the Model X.

Tesla shares facing downtrend trend

Tesla’s shares peaked in 2014 when their price touched $300, but now they have declined to around $190, falling by almost 20% this year. In a recent note, Ryan Brinkman of JPMorgan reduced his Q4 earnings expectations, and this could have led to the recent decline in the stock.

Tesla was unable deliver 4,000 Model X SUVs in the quarter, and this pushed analysts to lower their estimates. In the last quarter, the firm made around 500 Model X’s but delivered just over 200 units.

On Thursday, Tesla shares were up 0.87% at $189.70. Year to date, the stock is down by almost 21%, while in the last year, it is down by almost 6%.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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