EV major, Tesla (NASDAQ: TSLA) dipped in pre-market trading on Monday after a Reuters report that for the first time, Tesla is likely to ship its EVs to North America from China and has begun producing a version of the Model Y in Shanghai that could be sold in Canada this year.
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Tesla’s Model Y is the company’s best-selling EV globally. Over the weekend, Tesla’s website stated that it would offer a cheaper variant of the Model Y priced at C$10,000 and it would be available to customers in Canada between May and July. This version of Model Y has been tested for North America with a target of production of around 9,000 this quarter.
According to the report, the Canadian Government is likely to provide incentives worth C$5,000 for both the new version of Model Y and the more expensive long-range variant.
Elon Musk told analysts last week that the company’s Shanghai plant had the “lowest cost structure” among all its factories. Meanwhile, TSLA has raised its capex forecast to be in the range of $7 billion to $9 billion, up from its prior forecast between $6 billion and $8 billion offered in January, the company’s quarterly filing stated on Monday.
The quarterly filing added, “Overall, we expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales.”
Analysts are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 17 Buys, 11 Holds, and four Sells.
