‘A potential game changer’: Analysts praise Model Y and Tesla’s plan to ‘bring sexy back’
Tesla Chief Executive Elon Musk has never been shy about touting the potential for his company’s electric cars.
But even for someone bold enough to spring a plan to take Tesla private on the world without any warning, Musk’s take on what the new Model Y crossover will do to the automotive industry might be the epitome of hyperbole and high expectations.
“We’re bringing sexy back,” Musk declared, invoking the words of singer Justin Timberlake, as he debuted the Model Y at an event held Thursday night in Los Angeles.
It was quite the claim for showing off Tesla’s latest addition to its product line — especially for a car that comes with an introductory sticker price of $39,000, and which, even after months of anticipation ahead of Thursday’s reveal, still won’t appear in buyers’ driveways until late 2020.
As for bringing “sexy” back, the “Y” — along with the Model S, Model 3 and Model X — completes the spelling of the word “sexy” with Tesla’s four vehicles. (Turn the “3” around to make an “E” — Tesla reported wanted to make a Model E car, but Ford holds the rights to a vehicle with that name.)
But on Friday, reaction to the Model Y among Tesla investors wasn’t as sexy as Musk might have hoped. As trading progressed, Tesla shares fell by almost 5 percent, to $275.94. It failed to mirror the initial views of many Tesla analysts, who see the Model Y as a critical piece of Tesla’s future, and a vehicle that could force competitors to rethink their approaches to the crossover SUV market.
“The Model Y represents the most compelling value in electric mid-sized SUVs,” said Gene Munster, managing partner at Loup Ventures. “The main competition in the next several years — the Audi e-tron, Jaguar I-Pace …read more
Source:: The Mercury News – Business