Tesla Stock (NASDAQ:TSLA)
On Friday, the price of Tesla (NASDAQ:TSLA) stock extended its upward trend after Piper Sandler highlighted data that shows demand for the Model Y is increasing rapidly. As a result, Tesla stock surged in the market on Friday.
According to the findings of an investigation carried out by stock analyst Alexander Potter, recent price reductions on Tesla stock have started to trickle through to rises in demand.
“This morning, in our regular scraping of the ‘design studio’ on tesla.com, we saw a noticeable jump in wait times,” he said on Friday. “The wait times seem to be becoming longer and longer.” The wait time for customers in the United States has increased to between four and seventeen weeks for a Long Range Model Y, up from zero to eight weeks the day before.
Potter believes that Tesla’s rivals like Ford and General Motors “will suffer the brunt of [Tesla’s aggressive pricing approach.” This is even though Tesla’s gross margin is projected to take a blow. As a direct reaction to Tesla’s pricing moves, Ford has already begun to reduce costs for its electric Mustang vehicle.
The indication of demand in the United States, mirrored in the wait-time figures, seemed to offset slightly weak sales growth for automobiles manufactured in China. In addition, the Treasury Department recently revised its criteria for categorizing vehicles, which will affect the availability of tax credits. At this point, all different iterations of Model Y are eligible for that credit.
On Friday, the Austin-based electric vehicle (EV) company Tesla stock price saw a rise of 5.11%, making it the most successful of the big manufacturers. Ford’s stock fell significantly as the company missed earnings projections and apologized for operational concerns. On the other hand, General Motors saw a small increase in its share price.
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