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Tesla (TSLA) Unveils All-electric Model Y for Popular Segment

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Tesla, Inc. (TSLA - Free Report) unveiled the all-electric Model Y SUV for the most popular segment of the automobile market, per Associated Press. Its CEO, Elon Musk informed that the blue Model Y, having functionalities of SUV, will ride like a sports car. The company expects this car to be the safest model in the mid-size category.

Given the fact that Tesla is eager to enter the mainstream vehicle market and expects to generate huge amount of cash for debt repayments, Model Y is likely to be a key product.

The price of the standard range version of the all-electric, mid-size SUV is likely to start at $39,000 and it can travel 230 miles on a single charge. The long-range model, with the starting price of $47,000, can travel 300 miles on a single charge. An all-wheel, dual-motor version of the Model Y will have the starting price of $51,000 while the performance version of the vehicle will start at $60,000.

Tesla expects to deliver long range, rear-wheel drive and dual-motor, and performance and all-wheel drive versions of the Model Y in the fall of 2020. It anticipates high demand for the Model Y, nearly four years after the company revealed plans to manufacture an SUV.

Accrual of early down payments for Model Y would help Tesla garner the cash it requires for debt repayment. However, the success of Model Y will depend upon delivery time and manufacturing capacity.

Tesla has an expected long-term growth rate of 35%. Over the past three months, its shares have underperformed the industry it belongs to. Over this period, shares of the company have decreased 14.6% while the industry rose 2.7%.



Tesla currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Oshkosh Corp. (OSK - Free Report) and General Motors Company (GM - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 8.7%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have gained 25.9%.

General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 10.8%.

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