Elon Musk Teases ‘Model Y’ SUV, Fails to Resuce Tesla’s 7% Stock Fall
SpaceX founder Elon Musk reacts at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, U.S., March 2, 2019. REUTERS/Mike Blake TPX IMAGES OF THE DAY
Tesla has not had its best of weeks. Amidst fierce protests over drastic price cuts and a 7 percent plunge in its stock price, the company is facing criticisms from analysts and its customers.
On Sunday, Tesla CEO Elon Musk announced the launch of Model Y, a new addition to the company’s SUV line, and the Tesla V3.0 Supercharger Station, which could relieve some pressure on the company.
Model Y, being an SUV, is about 10% bigger than Model 3, so will cost about 10% more & have slightly less range for same battery
— Elon Musk (@elonmusk) March 3, 2019
How Model Y Launch Could Alleviate Pressure on Tesla
The decision of the company to bring down the price point of the Tesla Model 3 to $35,000 was met with mixed reactions from both Tesla owners and Wall Street analysts.
Former General Motors Vice Chairman Bob Lutz said on CNBC’s Squawk Box that the decline in the price of its flagship vehicle could present profitability issues for the company in the near-term.
“I think they’re facing a great deal of difficulty, because it’s obvious that they had to cost-reduce the Model 3 in order to have some sort of margin on it at $35,000 apiece.