Written by Cláudio Afonso | LinkedIn | X
Global Equities Research raised on Monday the firm’s price target on Tesla shares from $340 to $400, citing a recent “extremely strong” demand particularly for the Model 3 and Model Y.
“Tesla is experiencing accelerating demand triggered from $7,500 Point of Sales EV Credit, which reduces the Vehicle Price by another $7,500,” the firm noted adding that the turnaround moment was in early May.
“Starting around May 03, 2024, many potential car buyers somehow came to know about that Tesla reduces the Price of Model 3 and Model Y by another $7,500 at the time of purchase. Customers started to consider Point 3 above as instant rebate, and started to buy Tesla vehicles initially off the inventory” Global Equities Research added.
Tesla shares are trading 5 percent higher at $261 during Monday’s pre-market trading session.
Global Equities Research reported that Tesla has developed in-house software to simplify the ordering process resulting in reduced vehicle prices and integration with the IRS Inflation Reduction Act portal.
“Tesla has not only reduced the pricing on their vehicles, but also offer Point of Sales Credits of $7,500 instantly by reducing the price of vehicles by another $7,500 of already reduced Vehicle price,” the firm noted.
Last week, the company introduced a new rear-wheel drive variant of its Model 3 long-range in the U.S. market, priced $5,000 lower than the all-wheel drive version and $3,500 higher than the standard range version.
The new variant boasts an EPA range of 363 miles and can accelerate from 0 to 60 mph in 4.9 seconds. The new Model 3 long-range is available at $42,490, or $34,990 when including the federal EV tax credit.
Separately, Bloomberg reported that Tesla has postponed the event to unveil its Robotaxi model from August 8 to October. Earlier this year, CEO Elon Musk had announced on social media platform X that the event would occur in less than four weeks.
Written by Cláudio Afonso | LinkedIn | X
