Tesla, Inc. (TSLA - Free Report) recently announced that it will cut prices of its electric vehicles by around 6% in North America, as the firm ramps up car production at the Fremont plant. The price reduction comes as a result of the region’s dwindling auto demand over weeks of lockdown that has now begun to ease.
Per the company’s website, Model S sedans will now be priced at $74,990, down from $79,990. Its Model X sport utility vehicles (SUVs) are now priced at $79,990, from $84,990, and the cheapest Model 3 sedan will be $2,000 cheaper, priced at $37,990.
Moreover, Tesla will introduce price cuts in China, after price adjustments in the United States. It will slash prices for the Model S and Model X it imports by around 4%, but will keep the prices of locally-made Model 3 cars unchanged.
Meanwhile, robust production levels from the new Gigafactory in Shanghai bode well for Tesla’s growth. The Shanghai factory is ramping up well and commands a higher market share in the Chinese EV market. The plant is operating at full capacity, and will continue to generating solid revenues. Accelerated production from Gigafactory 4 in Berlin will also add to the top line.
The company also plans to roll out the new million-mile battery in collaboration with Contemporary Amperex Technology Ltd (CATL), at the earliest this year or in 2021, for its Model 3 in China. The battery prices are expected to be $100/kWh, the level at which electric vehicles (EVs) reach rough parity with internal combustion competitors.
Zacks Rank & Other Key Picks
Currently, Tesla carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the same sector are Veoneer, Inc. , Unique Fabricating, Inc. and Adient PLC (ADNT - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Tesla, Inc. (TSLA - Free Report) recently announced that it will cut prices of its electric vehicles by around 6% in North America, as the firm ramps up car production at the Fremont plant. The price reduction comes as a result of the region’s dwindling auto demand over weeks of lockdown that has now begun to ease.
Per the company’s website, Model S sedans will now be priced at $74,990, down from $79,990. Its Model X sport utility vehicles (SUVs) are now priced at $79,990, from $84,990, and the cheapest Model 3 sedan will be $2,000 cheaper, priced at $37,990.
Moreover, Tesla will introduce price cuts in China, after price adjustments in the United States. It will slash prices for the Model S and Model X it imports by around 4%, but will keep the prices of locally-made Model 3 cars unchanged.
Meanwhile, robust production levels from the new Gigafactory in Shanghai bode well for Tesla’s growth. The Shanghai factory is ramping up well and commands a higher market share in the Chinese EV market. The plant is operating at full capacity, and will continue to generating solid revenues. Accelerated production from Gigafactory 4 in Berlin will also add to the top line.
The company also plans to roll out the new million-mile battery in collaboration with Contemporary Amperex Technology Ltd (CATL), at the earliest this year or in 2021, for its Model 3 in China. The battery prices are expected to be $100/kWh, the level at which electric vehicles (EVs) reach rough parity with internal combustion competitors.
Zacks Rank & Other Key Picks
Currently, Tesla carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the same sector are Veoneer, Inc. , Unique Fabricating, Inc. and Adient PLC (ADNT - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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