One of the biggest developments in electric vehicle stocks is the Model 2 from Tesla (NASDAQ:TSLA). And that particular development has caused a lot of volatility in Tesla shares today. Some reports suggest that the Model 2 is dead in the water, while others suggest those reports are lies. But whatever the case actually is, Tesla shares are hit hard, down nearly 4% in Friday afternoon’s trading.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The story so far is complex and even unnerving in segments. The word is that Tesla was working on a new electric vehicle called the Model 2. Reports suggest that it has a range of up to 180 miles and uses a “tabless battery” design that helps keep prices down, along with a new set of lightweight materials.
While any of this may ultimately change—apparently, even the name “Model 2” is up in the air right now—one thing that was particularly impressive was the price tag. Instead of being priced like a used sports car, the Model 2 is said to run around $25,000, an utter game-changer in the EV market.
But Does It Even Exist?
That’s when the controversy and the drama kicked in, as a report from Reuters said that the Model 2 was as dead as a battery in winter. That led to Tesla’s CEO, Elon Musk, getting involved on X, declaring outright: “Reuters is lying.” Musk then twisted the knife by adding the aside (again) to his declaration of Reuters’ lies. Reuters, for its part, cited a set of internal documents, as well as some unnamed sources, to support its claims that the Model 2 is, in fact, dead. However, reports also note that the Model 2 might be getting modified a bit instead, becoming part of a larger “robotaxi” initiative instead.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on nine Buys, 19 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After an 11.3% loss in its share price over the past year, the average TSLA price target of $196.72 per share implies 19.17% upside potential.
