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Tesla (TSLA) on Price-Changing Spree, Hikes Price for Model Y
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Tesla (TSLA - Free Report) raised its Model Y’s price for the second time in February after consecutively slashing prices in January. According to Tesla’s website, the model Y performance crossover will now be priced at $58,990, still 16% cheaper than the price in January. Meanwhile, it cut the price of the rear-wheel-drive model 3, which will now cost $42,990. Earlier this month, the Treasury Department ruled that electric vehicle crossovers priced below $80,000 will qualify for $7500 tax credits. While for cars, wagons and sedan the limit to qualify for tax credit is below $55,000.
Tesla hiked the prices of the high-demand EV Model Y Long Range and Model Y Performance by $1,000 each early this month. In the latest price change, Tesla increased the price of the Model Y performance crossover by another $1,000. However, it slashed the price of its cheapest model, the rear-wheel-drive Model 3 sedan, by $500 to make it 9% cheaper.
No price change has been observed for the other two versions of Model Y and Model 3.
The price cut by Tesla earlier this year ignited a price war in the EV industry and became a cause of concern for legacy automakers like General Motors and Ford.
Elon Musk, CEO of Tesla, pointed out rising demand as the prime reason behind the price hike. Soon after the automaker slashed the price this year, it experienced an outburst of demand. It increased the price to strike the right balance between demand and supply.
The price cut faced backlash from Chinese buyers who had bought the crossover earlier and missed the opportunity to own it at a lower price. The price cut took a toll on the resale value of the vehicle in the United States, where the resale market is strong.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Image: Bigstock
Tesla (TSLA) on Price-Changing Spree, Hikes Price for Model Y
Tesla (TSLA - Free Report) raised its Model Y’s price for the second time in February after consecutively slashing prices in January. According to Tesla’s website, the model Y performance crossover will now be priced at $58,990, still 16% cheaper than the price in January. Meanwhile, it cut the price of the rear-wheel-drive model 3, which will now cost $42,990. Earlier this month, the Treasury Department ruled that electric vehicle crossovers priced below $80,000 will qualify for $7500 tax credits. While for cars, wagons and sedan the limit to qualify for tax credit is below $55,000.
Tesla hiked the prices of the high-demand EV Model Y Long Range and Model Y Performance by $1,000 each early this month. In the latest price change, Tesla increased the price of the Model Y performance crossover by another $1,000. However, it slashed the price of its cheapest model, the rear-wheel-drive Model 3 sedan, by $500 to make it 9% cheaper.
No price change has been observed for the other two versions of Model Y and Model 3.
The price cut by Tesla earlier this year ignited a price war in the EV industry and became a cause of concern for legacy automakers like General Motors and Ford.
Elon Musk, CEO of Tesla, pointed out rising demand as the prime reason behind the price hike. Soon after the automaker slashed the price this year, it experienced an outburst of demand. It increased the price to strike the right balance between demand and supply.
The price cut faced backlash from Chinese buyers who had bought the crossover earlier and missed the opportunity to own it at a lower price. The price cut took a toll on the resale value of the vehicle in the United States, where the resale market is strong.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.