Goldman Sachs commented on Tesla‘s new Model Y variant, which was revealed on Wednesday by China’s Ministry of Industry and Information Technology (MIIT).
The brand is preparing to launch in China a longer range trim of the Model 3 — named Model3+ — and the three-rowed, six seater Model Y L, with a slightly longer wheelbase.
In a new research note published on Thursday, analyst Mark Delaney said that the new version is “an incremental positive” for the brand.
The firm believes that “the Model YL will help Tesla to better address the SUV market especially in the US and Europe” due to its larger dimensions.
According to Cox Automotive, the EV maker sold 143,535 vehicles in the US in the second quarter, down 12.6% year over year. First half sales were also down by 10.8%, to a total of 271,635 units.
However, despite its launch being expected in the Chinese market this Fall, it remains unclear if/when the brand will start deliveries in other markets.
The analyst said that investors have been discussing the impact of new model launches in the second half, and how it “would help drive better vehicle delivery growth.”
In a previous note released on June 5, Goldman Sachs had lowered Tesla‘s delivery estimates for the second quarter, citing “weaker monthly datapoints in key regions” and “consumer survey data.”
Delaney had said “deliveries could end up between 335,000 and 395,000” units, depending on June results. The firm set a “base case” of 365,000 vehicles delivered in the April-June period, down from the prior 410,000 estimate.
The EV maker reported 384,122 vehicles delivered in the second quarter.
The figures were also up from the 336,681 units delivered in the first quarter, when production was impacted by the transition to the refreshed Model Y.
According to Delaney, “the YL is more differentiated from Tesla‘s current products than what investors were recently expecting for new model launches this year.”
The analyst noted that “a common view among investors had been that Tesla would launch a cost reduced and perhaps slightly smaller variant of the Y,” as reported by Reuters earlier this year, “but not something to help better address the three-row SUV market.”
Also on Thursday, Barclays analyst Dan Levy noted that the firm believes that Tesla may “delay the launch of the low-cost model to the fourth quarter, which could be perceived negatively.”
Goldman Sachs reiterated its Neutral rating on the stock, with a $285 price target — which implies a downside of 11.4% based on Wednesday’s close at $321.67.
In its latest vehicle safety report, posted on Thursday, the US EV maker revealed that its vehicles have driven an average of over 7 million miles per accident, when using the Autopilot technology.
The figures were the second best result ever, only behind the first quarter of 2024.
The national average was below 1 million miles in the first three months of the year.
According to Tesla enthusiast Sawyer Merritt on Thursday, the company has started running paid advertisements for its vehicles on X.
Four year ago, in 2021, Musk said that he didn’t want to run ads for his companies. “Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product,” he stated on X, adding that he “trust[s] the people.”
