Tesla Shares Tumble Amid Model Y Buzz and Model 3 Setbacks
1min read Tesla has recently been the focus of automotive news due to a series of developments around its Model 3 and Model Y vehicles. On December 30th, Tesla (TSLA) shares dropped by 3.30%, marking a third consecutive day of decline, with an overall drop of 9.71% in three days.
Among user experiences, a notable incident involved a Tesla Model 3 owner who faced a system crash only three weeks after acquiring the vehicle, leading to Tesla's road assistance stepping in to help resolve the issue. However, this hasn't deterred excitement around Tesla's offerings, as the company persists in enhancing its models with new features and updates.
Meanwhile, the spotlight has shifted slightly to the new Model Y, which has stirred speculation with a leaked video showcasing the car in disguise, suggesting significant updates to its front and rear design. The production of the updated Model Y seems to be picking up pace, with reports indicating that certain component procurements for the current version are being limited, presumably in preparation for the new model.
Tesla has been proactive in clearing inventories of the existing Model Y models through significant discounts. In China, the company has reduced prices by RMB 10,000, alongside a zero-interest loan offer for up to five years. In the U.S., Model Y discounts reach up to $4,870, marking one of its largest promotional efforts yet.
Despite facing competition from new entrants in the electric SUV market, such as the Zeekr 7X and the Avatr 07, the Model Y continues to perform strongly in sales, with 448,000 units sold domestically over the first eleven months of 2024. This positions Tesla favorably, as anticipation grows around the new Model Y, expected to bolster its future sales further.
Looking forward, industry observers eagerly await Tesla's next moves, both in terms of new releases and strategic promotions. The developments suggest Tesla's commitment to maintaining its competitive edge and adapting to market demands, particularly in the rapidly evolving electric vehicle sector. As the company navigates these dynamics, its efforts to innovate and expand its reach are under close watch.
