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TSLA Stock News: Musk Builds Hype Around Revamped Roadster Model  
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TSLA Stock News: Musk Builds Hype Around Revamped Roadster Model  

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Elon Musk is building hype around the revamped Roadster model, signaling that the new version is on the way.

Tesla (NASDAQ:TSLA) CEO Elon Musk is building hype around the long-awaited revamped Roadster model. Through a string of posts on the social media platform X, Musk said Tesla has significantly elevated the design objectives for the new Tesla Roadster, signaling that the latest version of its first production car is on the way. 

Musk added that the car can accelerate to 60 miles an hour in less than a second. Further, the Wall Street Journal reported that Tesla could start shipping the vehicle next year.

The development comes when the electric vehicle (EV) giant is facing a slowdown in demand due to the persistently high interest rates. Further, it is witnessing heightened competition, especially in China, the world’s largest EV market. Let’s delve deeper.

2024: So Far, A Challenging Year for Tesla  

Tesla stock is down about 19% year-to-date as the company, like its peers, is witnessing softness in EV demand. Compounding this challenge is an escalating price competition among automakers, placing strain on TSLA’s profit margins and share price.

To stimulate sales volume, Tesla opted to reduce prices at the expense of its margins. This strategy has led to a consistent downtrend in its margins over the past year. Notably, Tesla witnessed a stark 784 basis points drop in its operating margin in the fourth quarter of 2023.

Furthermore, Tesla is facing hurdles in expanding its manufacturing facility in Germany, which poses additional concerns for the company. 

Is Tesla Stock Expected to Go Up?

While Tesla stock has witnessed a pullback, analysts’ average price target suggests a limited upside potential over the next 12 months. 

TSLA stock has 12 Buy, 17 Hold, and five Sell recommendations for a Hold consensus rating. Analysts’ average price target of $218.75 implies 8.27% upside potential from current levels.  

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