Usually all news about Tesla is divided into news of Elon Musk posting something strange or controversial on Twitter and the actual news on Tesla vehicles. Furthermore, if a price drop of Tesla shares is observed, it is usually connected to the first category of news.
However, this time it seems like Elon Musk didn’t post anything to send the share price into the downfall direction, people just didn’t quite enjoy the newly announced Tesla Model Y.
Elon Musk has strongly decided to make his vehicles more accessible to larger amounts of people, thus establishing much lower prices for Tesla’s later releases. Model Y is his third attempt to enter the car mass market. So what could have disappointed the community so much that it made TSLA price plummet down?
So why wasn’t Tesla Model Y welcomed warmly?
There are two main factors which could have influenced the situation with the shares. Firstly, it is the price of Tesla Model Y. Although it was presented as a more affordable, mass market vehicle, its cost remains unbelievably high.
The starting price of the cheapest, standardized version of Model Y is 39 thousand dollars, while the long range one and Model Y Performance will retail for 47 and 60 thousand dollars correspondingly. Moreover, this is the cost of a bare car, extra details and features will add to the price significantly.
Many experts argue that despite the fact the price of Tesla Model Y is much higher than the similar SUVs, and not everybody believes that this cost is justified.
As we have already mentioned in our review of Model Y, this car shares 70% of details with its predecessor Model 3. The design of the two vehicles is also pretty similar.
Many people were displeased with the fact that Tesla hasn’t added any brand new features to their new car. Model Y looks just like an upgraded version of Model 3, so many people don’t see the need to purchase it.
Thus, these two factors summed up and resulted in an almost 5% drop of Tesla share price.
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