Tesla’s (TSLA) affordable electric vehicle is set to launch later this year, but it won’t be a brand-new design. Instead, CEO Elon Musk confirmed that it will be a cheaper version of the current Model Y. To cut costs, Tesla plans to simplify the crossover even further by removing features and making the car more basic while still keeping its core functionality. This approach shifts the focus away from creating an all-new model and toward reducing the price of one already in production.
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Clues about these changes come from Tesla hacker GreenTheOnly, who often uncovers details in the company’s firmware. His findings suggest that the stripped-down version (codenamed E41) will eliminate several features. For example, interior lighting may be limited to just the footwell, seat adjustments will be reduced to a single electronic axis, and extras like puddle lamps and the rear passenger display could be gone. Reports also indicate that Tesla may switch to a fiberglass roof liner instead of glass, remove power-folding mirrors, and leave out upgrades such as a heated rear camera and premium suspension.
GreenTheOnly also found signs that Tesla could offer both all-wheel-drive and rear-wheel-drive versions of this cheaper Model Y, though the motors may be tuned down to save money. Many of these cuts are similar to cost-saving measures already seen in Tesla’s budget Model 3 in Mexico, which uses cloth seats, fewer speakers, and less acoustic glass.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 15 Buys, 12 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $329.77 per share implies 23% downside risk.
