Tesla Developing Lower-Cost Compact Electric SUV
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy TSLA?
Source: seekingalpha
- New Model Development: Tesla is developing a smaller, lower-cost electric SUV, and while the project is still in its early stages, the company has begun discussions with suppliers regarding manufacturing processes and component specifications, indicating its intent to explore new market segments.
- Market Positioning: The SUV is expected to be shorter than the Model Y and priced significantly lower than the Model 3, which starts at $34,000 in China, aiming to attract a broader consumer base, with initial production likely in China before expanding to the U.S. and Europe.
- Strategic Shift: This move follows CEO Elon Musk's decision to scrap plans for a low-cost EV in 2024 and pivot towards robotaxis and humanoid robots, showcasing the company's adaptability in the electric vehicle market.
- Future Outlook: While it remains unclear if this SUV signifies a return to mass-market vehicles, sources suggest the new model could cater to both human-driven and autonomous driving functionalities, reflecting Tesla's long-term vision for autonomous technology.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 345.620
Low
25.28
Averages
401.93
High
600.00
Current: 345.620
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Market Expectations and Risks: Despite SpaceX's potential in emerging markets, investors should approach the IPO with caution, as it may face lock-up period pressures; historically, many large IPOs experience price declines in the months following their debut, and SpaceX could face similar circumstances.
See More
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- Significant Price Advantage: SpaceX raised the price of Falcon 9 launches by 6.1% to $74 million, still undercutting competitors who charge over $100 million, further solidifying its market share.
- High Profit Margin Potential: Analysts estimate that SpaceX's cost per launch could be as low as $17 million, suggesting an operating margin of up to 77%, indicating the sustainability of its business model.
- Diversified Revenue Sources: While SpaceX's rocket launch business is profitable, its Starlink and xAI ventures may incur losses, with projected total revenue of $18.5 billion but losses of $5 billion in 2025, prompting investors to monitor overall financial health.
See More
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- Launch Volume Leadership: SpaceX launched 165 Falcon 9 rockets last year, surpassing the combined total of all other nations by 34%, which underscores its dominant position in the global space market and further solidifies its market share.
- Price Strategy Adjustment: SpaceX raised the launch price of its Falcon 9 rocket by 6.1% to $74 million, leveraging its unique reusability technology to significantly undercut competitors' launch costs, thereby attracting more customers.
- Profitability Analysis: Analysts estimate that SpaceX's cost per Falcon 9 launch could be as low as $17 million, which, if accurate, would yield an operating margin as high as 77%, giving SpaceX a strong competitive edge in profitability within the aerospace industry.
- IPO Outlook: Despite reports suggesting that SpaceX's overall profitability may be lower than its rocket launch business, its dominant position in space launches and high profit margins still make its IPO highly anticipated, drawing significant investor interest.
See More
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