“Bitcoin is the smart move at the right time for Tesla in our opinion, but on the downside it is playing with firecrackers and risks and volatility add to the Tesla story,” said Daniel Ives, technology analyst at Wedbush Securities , who remains bullish on Tesla Stock.
Y model prices
Last Thursday, Tesla cut the price of the cheapest version of its Model Y and its best-selling Model 3 by $ 2,000 each. That raised the price of the “standard range” Model Y, one that can travel 244 miles on a charge, to $ 38,490 – and the standard range Model 3 to $ 34,590.
But over the weekend, the cheaper “standard range” version of the Model Y disappeared from Tesla’s sales site, leaving only the more expensive long-range and performance versions of the SUV. Tesla did not explain his decision.
“We see the plausible reasons as: either the combination leaned too far towards the cheaper variant and was therefore going to kill their margins, or most likely there simply wasn’t much demand for the lower variant,” Gordon Johnson said. from GLJ Research, one of the most bearish critics of Tesla stocks. He said recent price cuts and other price cuts show that Tesla vehicles are not in demand that their fans claim.
“Tesla cannot keep its current factories running at capacity without … price cuts,” Johnson said in a note Monday.
Recently established automakers have set ambitious targets for their own EV sales.
Those efforts are making some Tesla investors nervous, Ives said, though he believes there will be enough shift toward electric vehicles for multiple winners among global automakers.
Investors were ahead of themselves
During the earnings conference call on Jan.27, Musk also spoke about a shortage of batteries needed to power electric vehicles. He said that even with Tesla’s internal supply of batteries and its planned expansion of battery production, the company is struggling to find the batteries it wants to build more vehicles.
“The fundamental limit of electric vehicles at the moment, in general, is the total availability of [battery] cells, “he said. For example, Musk said that Tesla would have already started producing a semi-trailer if it had the batteries available to do so.
Stocks keep rising
Shares of Tesla were up a market-leading 743% in 2020 as investors embraced the idea that the future of the auto industry would be electric. Tesla remains by far the most valuable automaker in the world, with a market value far greater than the eight largest automakers combined.
Some investors believe that Tesla shares soared too high. However, many analysts believe that Tesla will rebound. Ives has a 12-month price target of $ 950.
Still, he has a caveat: “It’s ‘time to buckle up’ again for Tesla stocks with more volatility on the horizon,” Ives said.