Tesla (TSLA) has launched a new, higher-priced version of its best-selling Model Y in the United States, Canada, and Europe. The starting price of this vehicle has been increased by 25% to $59,990 for the long-range all-wheel-drive variant. This move comes as TSLA faces rising competition from Chinese manufacturers like BYD (BYDDF).
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The updated Model Y has a new look, improved interiors, and a longer range of 320 miles. It also includes Tesla’s “Full Self-Driving” software, which was earlier an $8,000 option.
It is worth highlighting that the new Model Y will first be available as a limited-edition “Launch Series,” with deliveries set to start in March.
Model Y Rollout Comes amid EV Incentive Uncertainty
This launch comes as Tesla navigates uncertainty about EV incentives after the new U.S. administration raised doubts about the future of EV tax credits. At the same time, Tesla has been facing a slowdown in sales over the past few months, reflecting increased competition in the EV market.
Despite these challenges, Tesla remains optimistic about its future growth. CEO Elon Musk has projected a 20-30% increase in vehicle sales this year, driven in part by the launch of more affordable and upgraded models.
The launch of the refreshed Model Y, therefore, underscores Tesla’s efforts to retain its leading position in the global EV market.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA has a Hold consensus rating based on 13 Buys, 12 Holds, and nine Sells assigned in the last three months. At $329.63, the average Tesla price target implies a 20.07% downside potential. Shares of the company have gained 90.93% over the past six months.
