Tesla Stock Owners May Not Like the Math of the Model 3 - Investorplace.com
Even before would-be consumers had a chance to recover from the sticker shock of a $135,000 price tag for its upcoming Model X “Signature” line of electric vehicles, Tesla Motors ( TSLA ) raced to the value-end of the spectrum today when the... Tesla stock didn’t move much on the news of a lower-end vehicle — the Model 3 — perhaps because the market isn’t quite sure what to think of it. On the one hand, a lower price means sales of more units. On the other hand, a lower-priced model potentially mars some of the mystique of owning a Tesla vehicle. A lower-priced electric vehicle that’s priced competitively with new combustion-driven vehicles will allow Tesla Motors to compete in the far bigger mid-priced market where it has no exposure now. Year-to-date, 2. 4 million midsized automobiles have been bought, and 2. 9 million so-called “crossover” vehicles (and the Model S will come in a crossover version) have been purchased. 10, Reuters writers Joseph White and Paul Lienert pointed out that, based on the company’s second quarter, Tesla lost $4,000 for every high-end Model S vehicle it sold during Q2. It took less than a day for an army of fan-boys and Tesla supporters... Source: investorplace.com
