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Tesla (TSLA) Recalls More Than 127K EVs, Hikes Model 3 Price
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Tesla, Inc. (TSLA - Free Report) has recalled 127,785 vehicles in China over potential faults in semiconductor components that might lead to collisions per directions from the State Administration for Market Regulation. The affected cars were manufactured between January 2019 and January 2022. Out of the total number of units, 34,207 units were imported, and 93,578 were made in China.
In another move, Tesla has increased the price of the Tesla Model 3 in the United States. This would mark the third price hike for the model in around a month. This time, two NCM (high-nickel cathode)-powered versions of the Model 3 will experience a price jump, while the LFP-powered version’s price will remain stable.
The new price of the Model 3 LR AWD now stands at $55,990, increasing from $54,4490. The Performance version will start at $62,990, up from $61,900. The base version of the Model 3 will remain unchanged at $46,990. It is assumed that the price hike is applicable only for vehicles that have NCM battery cells. Nickel prices increased 62% in the first few months of the year on account of the Russia-Ukraine conflict, which is probably driving the decision of price hike.
In a separate development, Tesla has also started official production at the new Giga Texas plant in Austin. It is the country’s biggest factory by size. It will also produce the highest volume in the United States when fully ramped up, looking to manufacture at least 500,000 vehicles annually by next year.
Initially, it will come up with Model Y hatchbacks, with the hard-edged Cybetruck pickup starting production next year, along with a new version of the Roadster sports car and Tesla Semi. The plant will also produce the Optimus humanoid robot as early as next year, after it was unveiled in the form of a person in a robot suit at Tesla’s AI day in 2021.
The efforts are in the light of strong demand for electric vehicles (EVs). The Austin factory, together with Tesla’s new Giga Berlin plant, its fast-growing Shanghai Gigafactory and Fremont, California, will provide the company with a capacity to build around 2 million vehicles annually in the upcoming years. This ambitious target will go on to double Tesla’s 2021 production.
The auto industry has its eyes on the giant as it readies for a surge of aspiring projects.
Shares of TSLA have surged 56.1% over the past year, outperforming its industry’s 8.6% rise.
Harley-Davidson has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 27% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.6%, on average. The stock has lost 12% over the past year.
LCI Industries has an expected earnings growth rate of 26.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 15% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one. LCII pulled off a trailing four-quarter earnings surprise of 12.9%, on average. The stock has declined 24.5% over the past year.
Suzuki Industries has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.9% upward in the past 60 days.
SZKMY’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. SZKMY pulled off a trailing four-quarter earnings surprise of 127.7%, on average. The stock has declined 26.9% over the past year.
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Tesla (TSLA) Recalls More Than 127K EVs, Hikes Model 3 Price
Tesla, Inc. (TSLA - Free Report) has recalled 127,785 vehicles in China over potential faults in semiconductor components that might lead to collisions per directions from the State Administration for Market Regulation. The affected cars were manufactured between January 2019 and January 2022. Out of the total number of units, 34,207 units were imported, and 93,578 were made in China.
In another move, Tesla has increased the price of the Tesla Model 3 in the United States. This would mark the third price hike for the model in around a month. This time, two NCM (high-nickel cathode)-powered versions of the Model 3 will experience a price jump, while the LFP-powered version’s price will remain stable.
The new price of the Model 3 LR AWD now stands at $55,990, increasing from $54,4490. The Performance version will start at $62,990, up from $61,900. The base version of the Model 3 will remain unchanged at $46,990. It is assumed that the price hike is applicable only for vehicles that have NCM battery cells. Nickel prices increased 62% in the first few months of the year on account of the Russia-Ukraine conflict, which is probably driving the decision of price hike.
In a separate development, Tesla has also started official production at the new Giga Texas plant in Austin. It is the country’s biggest factory by size. It will also produce the highest volume in the United States when fully ramped up, looking to manufacture at least 500,000 vehicles annually by next year.
Initially, it will come up with Model Y hatchbacks, with the hard-edged Cybetruck pickup starting production next year, along with a new version of the Roadster sports car and Tesla Semi. The plant will also produce the Optimus humanoid robot as early as next year, after it was unveiled in the form of a person in a robot suit at Tesla’s AI day in 2021.
The efforts are in the light of strong demand for electric vehicles (EVs). The Austin factory, together with Tesla’s new Giga Berlin plant, its fast-growing Shanghai Gigafactory and Fremont, California, will provide the company with a capacity to build around 2 million vehicles annually in the upcoming years. This ambitious target will go on to double Tesla’s 2021 production.
The auto industry has its eyes on the giant as it readies for a surge of aspiring projects.
Shares of TSLA have surged 56.1% over the past year, outperforming its industry’s 8.6% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently TSLA carries a Zacks Rank #2 (Buy).
Other top-ranked players in the auto space include Harley-Davidson, Inc. (HOG - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Suzuki Motor Corporation (SZKMY - Free Report) , carrying a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 27% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.6%, on average. The stock has lost 12% over the past year.
LCI Industries has an expected earnings growth rate of 26.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 15% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one. LCII pulled off a trailing four-quarter earnings surprise of 12.9%, on average. The stock has declined 24.5% over the past year.
Suzuki Industries has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.9% upward in the past 60 days.
SZKMY’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. SZKMY pulled off a trailing four-quarter earnings surprise of 127.7%, on average. The stock has declined 26.9% over the past year.