Tesla (NASDAQ:TSLA) raised the prices of its Model Y cars by $1,000, the EV major announced on its website. With this price hike, Tesla’s base variant of Model Y will now cost $44,990, while the long-range and performance variants will be priced at $49,990 and $53,490, respectively, effective April 1.
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Moreover, the company announced on X that it has produced its 6 millionth vehicle, just before it is expected to announce its Q1 vehicle deliveries tomorrow. Overall, Wall Street estimates that TSLA will deliver 457,000 units in Q1, up from 423,000 units in the same period last year. Even with the rise in vehicle deliveries, there is likely to be a deceleration in the growth rate as the company seems to be struggling significantly in the United States and China.
Factors Contributing to Tesla’s Challenges
Several factors are contributing to the challenges faced by TSLA in terms of its vehicle deliveries. Firstly, production challenges at its factories in Fremont, California, and in Germany are hindering the company’s ability to meet demand efficiently.
Furthermore, the increasing competition in the electric vehicle market in China poses a threat to TSLA’s market share and sales volume. As more players enter the market with competitive offerings, TSLA must work harder to differentiate its products and maintain its position as a leader in the industry.
Additionally, TSLA’s aging model lineup is also a concern. As consumer preferences evolve and technology advances rapidly in the automotive sector, TSLA must update and innovate its vehicle models to stay relevant and appealing to buyers. Failure to do so may result in a decline in demand for its existing models and a loss of market share to competitors with more modern offerings.
What is the Target Price for Tesla Stock?
Analysts remain sidelined about TSLA stock with a Hold consensus rating based on nine Buys, 19 Holds, and seven Sells. Year-to-date, TSLA stock has slid by more than 25%, and the average TSLA price target of $198.72 implies an upside potential of 13% at current levels.
