Tesla Inc (NASDAQ: TSLA) has introduced a cheaper version of its Model Y car in China. The car can drive 525 kilometers on a single charge. It has a starting price of 291,840 but customers can purchase it for 276,000 yuan with government subsidy for new energy vehicles.
After factoring in the subsidy, the new Model Y version costs about 20% less than the long-range variant priced at 347,900 yuan and offers 594 kilometers of driving range. In China, Tesla Inc (NASDAQ: TSLA) explains, a vehicle priced above 300,000 yuan is not eligible for government’s new energy subsidy.
The additional version expands the Model Y selection for Tesla Inc (NASDAQ: TSLA) drivers in China. In addition to the new standard-range and long-range variants, there is also Model Y Performance version that costs 377,900 yuan and offers 480 kilometers of driving range.
The new Model Y has a rear wheel drive powertrain. The Long-range and Performance variants are both all-wheel drive powertrains. Tesla Inc (NASDAQ: TSLA) expects to begin deliveries of the cheaper Model Y in August.
JPMorgan analyst Ryan Brinkman recently reiterated a Sell rating with a price target of $160 on Tesla Inc (NASDAQ: TSLA) stock. Brinkman’s price target suggests 75.49% downside potential. The analyst acknowledged that Tesla’s global deliveries for the second-quarter were in line with consensus estimates. That led him to raise Tesla Inc (NASDAQ: TSLA) full-year deliveries target to 820,000 vehicles from 815,000. Moreover, the analyst hiked Tesla’s 2021 EPS estimate to $4.20 from $4.10. But Brinkman observed that the bearish rating on the stock reflects the current stretched valuation and above-average execution risk.
Tesla Inc (NASDAQ: TSLA) stock closed at $685.70, up 4.38% in the last trading session. The volume was 23.26 million, the stock traded in the range of $662.16 to $687.24. The 52-week high is $900.40.
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