We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Tesla's New Discounts on Model Y Help Boost Q4 Deliveries?
Read MoreHide Full Article
Key Takeaways
Tesla is rolling out broad Model Y discounts and incentives to boost fourth-quarter sales.
The offers include up to $2,000 off, free service bundles and 0% APR financing options.
TSLA aims to clear inventory and stay competitive as lower-priced rivals intensify pressure.
Electric Vehicle (EV) giant Tesla (TSLA - Free Report) has introduced an all-out discount strategy to boost fourth-quarter sales numbers for Model Y. As the company is in the final leg of the year, it is offering a wide range of incentives to attract more customers. Tesla is offering up to $1500 off for the Model Y Standard, which starts with a base price of $39,990. Similarly, the Model Y Premium, which starts at $44,990, gets up to $2000 off.
The company is also offering one free service, like free paint color, interior color, or upgraded wheels, making the deal sweeter. It also offers 0% APR financing for up to 72 months and low-interest financing for other models.
Tesla’s strategy is to make the deal more affordable for customers with easy monthly payment options. With the help of these lucrative offers, Tesla is planning to clear out their inventory and is trying to keep up with third-quarter sales and revenue numbers with their incentive program.
The company delivered 497,099 vehicles, which rose 7% year over year and topped our estimate of 435,370 units. The Model 3/Y registered deliveries of 481,166 vehicles, which rose 9% year over year and topped our expectations of 416,456 units.
Tesla’s latest move may be a step forward, but they have to be more competitive with their offers. While discounts or offers can work for the short-term for someone who is interested in the EV buying space, overall, the company needs to look for other options to maintain its growth intact to cope with strong competition in the market.
Chinese automaker XPeng (XPEV - Free Report) is offering models at lower prices. The XPeng G7 offers over 700 km of range with a starting price under $28k, significantly cheaper than Tesla’s Y model. XPeng betting is big on its advanced XNGP system, which has already been active in multiple Chinese cities. XPeng’s hands-free technology handles highway and traffic signals. It stands out in pushing for map-free driving, which is a key step toward a scalable auto environment.
NIO Inc. (NIO - Free Report) Onvo L60 (with battery included), offers a range of up to 740km on its 85-kwh model, which is priced somewhere around $29,300. NIO is racing ahead with the NOP+ driver-assist system technology, which offers point-to-point driving assistance on highways and roads. NIO is positioning itself as a serious challenger in the hands-free segment, especially in global EV markets, where it is looking to expand its services. It is aggressively focusing on battery innovation, smart driving services, technology advancement and global expansion in the EV segment.
The Zacks Rundown on TSLA Stock
Shares of Tesla have gained 10.6% year to date compared with the industry’s growth of 15.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 14.02, above the industry and its own five-year average. It carries a Value Score of D.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for TSLA’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
Tesla stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Can Tesla's New Discounts on Model Y Help Boost Q4 Deliveries?
Key Takeaways
Electric Vehicle (EV) giant Tesla (TSLA - Free Report) has introduced an all-out discount strategy to boost fourth-quarter sales numbers for Model Y. As the company is in the final leg of the year, it is offering a wide range of incentives to attract more customers. Tesla is offering up to $1500 off for the Model Y Standard, which starts with a base price of $39,990. Similarly, the Model Y Premium, which starts at $44,990, gets up to $2000 off.
The company is also offering one free service, like free paint color, interior color, or upgraded wheels, making the deal sweeter. It also offers 0% APR financing for up to 72 months and low-interest financing for other models.
Tesla’s strategy is to make the deal more affordable for customers with easy monthly payment options. With the help of these lucrative offers, Tesla is planning to clear out their inventory and is trying to keep up with third-quarter sales and revenue numbers with their incentive program.
The company delivered 497,099 vehicles, which rose 7% year over year and topped our estimate of 435,370 units. The Model 3/Y registered deliveries of 481,166 vehicles, which rose 9% year over year and topped our expectations of 416,456 units.
Tesla’s latest move may be a step forward, but they have to be more competitive with their offers. While discounts or offers can work for the short-term for someone who is interested in the EV buying space, overall, the company needs to look for other options to maintain its growth intact to cope with strong competition in the market.
Chinese automaker XPeng (XPEV - Free Report) is offering models at lower prices. The XPeng G7 offers over 700 km of range with a starting price under $28k, significantly cheaper than Tesla’s Y model. XPeng betting is big on its advanced XNGP system, which has already been active in multiple Chinese cities. XPeng’s hands-free technology handles highway and traffic signals. It stands out in pushing for map-free driving, which is a key step toward a scalable auto environment.
NIO Inc. (NIO - Free Report) Onvo L60 (with battery included), offers a range of up to 740km on its 85-kwh model, which is priced somewhere around $29,300. NIO is racing ahead with the NOP+ driver-assist system technology, which offers point-to-point driving assistance on highways and roads. NIO is positioning itself as a serious challenger in the hands-free segment, especially in global EV markets, where it is looking to expand its services. It is aggressively focusing on battery innovation, smart driving services, technology advancement and global expansion in the EV segment.
The Zacks Rundown on TSLA Stock
Shares of Tesla have gained 10.6% year to date compared with the industry’s growth of 15.8%.
From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 14.02, above the industry and its own five-year average. It carries a Value Score of D.
See how the Zacks Consensus Estimate for TSLA’s earnings has been revised over the past 90 days.
Tesla stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.