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 Prices by 6% in North America, 4% in China
Read MoreHide Full Article
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.
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.
Image: Bigstock
Tesla (TSLA) Cuts Prices by 6% in North America, 4% in China
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 >>