We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Tesla (TSLA) Cuts Model S/X Prices, Unveils Model 3 Refresh
Read MoreHide Full Article
Tesla (TSLA - Free Report) announced another round of price cuts for Model S/X. The electric vehicle manufacturer has reduced the prices of Model S and X by 15-19% in the United States on all trim levels.
Two weeks ago, Tesla launched the standard range for the Model S and Model X at a starting price of $78,490 and $88,490, respectively. These two models are no longer available; however, with the fresh round of price cuts, the larger-battery version base prices of Model S/X are lower than the smaller-battery version base prices of models before the price cut.
Model S and Model X are now available at a base price of $74,990 (a 15% drop from $88,490) and $79,990 (an 18.8% decrease from $98,490), respectively. Also, base models now have a larger battery for both Model S and X, with an estimated EPA range of 405 miles and 348 miles, up from 320 miles and 269 miles, respectively. However, per Electrek, hardware-wise, these cars have not changed.
Now, the buyers do not need to trade-off between colors and prices as all the colors are available at the same price.
Due to the price cuts, Model X is now eligible for a $7,500 U.S. Federal EV Tax Credit. The Inflation Reduction Act puts a cap on the prices of vehicles that qualify for tax credits. The threshold is $55,000 for cars and $80,000 for trucks and SUVs. Previously, both Model S and X were above the cap, but now Model X is below the specified SUV price cap. Certain qualified buyers can now buy an X for less than an S, provided they buy a base model.
Per Tesla, credit availability is likely to reduce at the end of this year due to stricter requirements that take place at the end of each year.
The company also reduced the price of Full Self-Driving software by $3,000 from $15,000 in the United States for customers who make an upfront purchase.
The price of the Plaid versions for both models dropped to $89,990 from $108,490. In China, the automaker is reducing the price of both models by about 7%.
Moreover, Tesla’s newly unveiled Model 3 refresh with improved features costs approximately 12% higher in China compared with its predecessor. The car includes a longer-range battery and a touchscreen that allows passengers to adjust comfort settings and entertainment.
Meanwhile, the National Highway Traffic Safety Administration (NHTSA) is about to wrap up a years-long investigation into safety concerns related to Tesla’s driver assistance systems. The investigation started after a series of crashes.
Last week, Tesla faced a federal probe on whether it had deliberately misled consumers with its previous EV battery range to benefit Elon Musk, CEO of Tesla. Musk later denied the claim.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 47 cents in the past 30 days. The EPS estimate for 2024 has moved up by 5 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 7 cents and 8 cents, respectively, in the past 30 days.
Image: Bigstock
Tesla (TSLA) Cuts Model S/X Prices, Unveils Model 3 Refresh
Tesla (TSLA - Free Report) announced another round of price cuts for Model S/X. The electric vehicle manufacturer has reduced the prices of Model S and X by 15-19% in the United States on all trim levels.
Two weeks ago, Tesla launched the standard range for the Model S and Model X at a starting price of $78,490 and $88,490, respectively. These two models are no longer available; however, with the fresh round of price cuts, the larger-battery version base prices of Model S/X are lower than the smaller-battery version base prices of models before the price cut.
Model S and Model X are now available at a base price of $74,990 (a 15% drop from $88,490) and $79,990 (an 18.8% decrease from $98,490), respectively. Also, base models now have a larger battery for both Model S and X, with an estimated EPA range of 405 miles and 348 miles, up from 320 miles and 269 miles, respectively. However, per Electrek, hardware-wise, these cars have not changed.
Now, the buyers do not need to trade-off between colors and prices as all the colors are available at the same price.
Due to the price cuts, Model X is now eligible for a $7,500 U.S. Federal EV Tax Credit. The Inflation Reduction Act puts a cap on the prices of vehicles that qualify for tax credits. The threshold is $55,000 for cars and $80,000 for trucks and SUVs. Previously, both Model S and X were above the cap, but now Model X is below the specified SUV price cap. Certain qualified buyers can now buy an X for less than an S, provided they buy a base model.
Per Tesla, credit availability is likely to reduce at the end of this year due to stricter requirements that take place at the end of each year.
The company also reduced the price of Full Self-Driving software by $3,000 from $15,000 in the United States for customers who make an upfront purchase.
The price of the Plaid versions for both models dropped to $89,990 from $108,490. In China, the automaker is reducing the price of both models by about 7%.
Moreover, Tesla’s newly unveiled Model 3 refresh with improved features costs approximately 12% higher in China compared with its predecessor. The car includes a longer-range battery and a touchscreen that allows passengers to adjust comfort settings and entertainment.
Meanwhile, the National Highway Traffic Safety Administration (NHTSA) is about to wrap up a years-long investigation into safety concerns related to Tesla’s driver assistance systems. The investigation started after a series of crashes.
Last week, Tesla faced a federal probe on whether it had deliberately misled consumers with its previous EV battery range to benefit Elon Musk, CEO of Tesla. Musk later denied the claim.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) , Gentex Corporation (GNTX - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 47 cents in the past 30 days. The EPS estimate for 2024 has moved up by 5 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 7 cents and 8 cents, respectively, in the past 30 days.