Tesla (TSLA) stock is climbing in pre-market trading as it sets to show off something really exciting on an event scheduled for October 7. On Sunday, billionaire Elon Musk’s company posted a nine-second teaser video on its X account. The video shows something similar to a wheel fan, wheel cover, or some sort of a propeller spinning, ending with the date “10/7.”
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Neither Tesla nor Musk has given any clues about the announcement. However, speculation points to two possibilities. Either Tesla is launching the most-anticipated Tesla Roadster or the electric vehicle (EV) maker is finally unveiling a new low-cost model. However, knowing Musk, Tesla could reveal something completely unexpected.
Tesla Could Host a Roadster Demo Event
Tesla has been developing the second-generation Roadster, featuring advanced technology, with an expected launch of 2026. Earlier this year, Tesla announced a Roadster Demo event, which has been delayed several times. The team is working on innovative features, including a special SpaceX package that uses small rocket-like cold-gas thrusters.
This package could enable the Roadster to accelerate from 0 to 60 mph in an incredible 1.1 seconds. It is also expected to help the car hover, something Musk has hinted at for years. The Roadster might be able to perform short “hops” using these thrusters, though it is unclear when or if this will be demonstrated.
Tesla Could Launch an Affordable EV
Reports are suggesting that Tesla could finally be launching its more affordable EV to counter a potential sales decline following the EV tax credit expiration on September 30. Earlier this year, Musk stated that the low-cost auto would be a stripped-down version of the Model Y. On Friday, some X posts showed videos of the new affordable Model Y driving near Giga Texas. The EV has the Model Y body, no glass hood, and possibly has a front bumper camera.
The timing is ideal if Tesla really anticipates a notable sales decline without the $7,500 tax credit. The EV giant reported robust third-quarter deliveries owing to a likely pull-forward in demand ahead of the expiration of EV consumer tax credits.
Tesla said in June that the first versions of its new affordable car were built, but sales will start in the fourth quarter with slower production ramp-up than planned. The new version is designed to cost about 20% less to make than the updated Model Y. Tesla hopes to produce around 250,000 of these cheaper Model Ys each year in the U.S. by 2026.
Is TSLA Stock a Buy, Hold, or Sell?
On TipRanks, TSLA stock has a Hold consensus rating based on 15 Buys, 12 Holds, and nine Sell ratings. The average Tesla price target of $347.42 implies 19.2% downside potential from current levels. Year-to-date, TSLA stock has gained 6.4%.
