Tesla initially planned to produce a brand new model that would cost $25,000 before changing course in order to focus on the development of robotaxis. Instead, the carmaker decided to offer a “stripped-down” version of its popular Model Y that was slated to start production in the first half of 2025. This affordable model would be smaller and come with fewer features while being 20% cheaper to produce compared to the original.

Tesla still plans to produce 250,000 units of cheaper Model Y in the United States in 2026. However, the start of production will come at least a few months later than the company envisioned. The reasons for the delay remain undisclosed.

The EV giant reportedly also plans to produce the lower-cost Model Y in China and Europe while working on a cheaper version of Model 3 that will launch at a later date. 

The decision to introduce affordable models is part of Tesla’s strategy to address the slumping sales that the company faced in early 2025. It previously reported a 13% drop in sales for the first three months of the year, marking its worst quarter since 2022. Tesla’s stock has taken a hit as a result, being 36.36% down year-to-date.

The post Tesla Delays the Launch of U.S.-Made Affordable EV appeared first on theprimarymarket.com.

Musk increased his wealth by $20 billion thanks to the stock jump of the electric vehicle company Tesla and insider shares sales in space technology company SpaceX. Musk founded both companies and is currently their CEO.

Tesla stock closed at an all-time high of $424.77 per share on Wednesday after six straight days of gain. The EV company’s shares are 70.99% up year-to-date and reached a record for the first time since 2021.

Meanwhile, SpaceX sold $1.25 billion worth of shares during an insider sale. This gives the company a valuation of $350 billion, making it the most valuable startup in the world.

Bloomberg estimates that Musk’s net worth increased by $62.8 billion on Wednesday, making it the largest one-day wealth gain on record. His total net worth increased by $218 billion in 2024 alone and is now believed to be around $447 billion.

Besides Tesla and SpaceX, Musk’s net worth has also been boosted by ownership of the social media platform Twitter and artificial intelligence startup xAI. While Twitter is now valued at $12.32 billion compared to the $44 billion price Musk paid for it in April 2022, xAI has almost doubled in value in recent months and is now estimated to be worth $50 billion.

The post Elon Musk Becomes First Individual to Reach Net Worth of $400 Billion appeared first on theprimarymarket.com.

Tesla narrowly missed the analysts’ estimates on revenue, reporting $25.18 billion for the third quarter compared to the expected $25.4 billion. However, the figure represents an 8% year-over-year increase and improvement on $25.05 billion it had in the second quarter.

The company’s adjusted earnings per share, on the other hand, came at $0.72 to beat the estimates of $0. 58. Its margin figure was at 19.8% versus the expected 16.8%, accompanied by an adjusted net income of $2.5 billion and $2.9 billion in free cash flow.

“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” Tesla stated in a press release.

Tesla also said that the preparations for offering new vehicles are “underway,” sharing that the highly-anticipated affordable model, which is rumored to have a price below $30,000, will launch in the first half of 2025. Company’s CEO Elon Musk added during an earnings call that the expected volume growth in 2025 will be between 20% and 30%.

The investors welcomed the news, causing Tesla’s stock to surge 21.92% and close at $260.48 per share. This marked the stock’s best day in 11 years. It also brought the company’s shares 4.85% up year-to-date.

The post Tesla Stock Surges Close to 22% on Strong Earnings, Cheaper EV Model Timeline appeared first on theprimarymarket.com.

Tesla said it produced 469,796 EVs and delivered a total of 462,890 units from July to September, with the latter being an increase of 6.4% compared to the same period in 2023. However, the mark came below of the analysts’ expectations on multiple levels. Analysts polled by FactSet expected 463,310 deliveries, while analysts polled by LSEG had 469,828 deliveries penciled in.

Despite the miss, there are some positives for Tesla, considering that this was the first growth in deliveries it had seen in 2024. It previously had a 6.5% slide in global deliveries for the first half of the year.

Still, these numbers make it unlikely that Tesla will manage to clear CEO Elon Musk’s goal of surpassing the record of 1.8 million cars delivered in 2023. The EV maker delivered 1,293,656 units in the three quarters and would have to also have a record fourth quarter by a significant margin to get there.

Investors were not particularly pleased with Tesla’s delivery report as the company’s stock dropped by 3.5% on Wednesday to close at $249.02 per share. This resulted in all of the stock’s gains in 2024 being wiped out.

The post Tesla Stock Slides After EV Maker Misses on Q3 Deliveries appeared first on theprimarymarket.com.

Tesla’s struggles and the erratic behavior of its outspoken CEO, Elon Musk, are now making even the company’s most determined backers question their position. One of them is early Tesla investor and EV maker’s longtime backer Ross Gerber, the CEO of financial planner Gerber Kawasaki.

In a recent interview with Business Insider, Gerber said that his clients are pleading with him to exit the company’s position in Tesla. He already started meeting those requests, selling half of Gerber Kawasaki’s Tesla holdings.

Gerber says his firm currently owns $60 million in Tesla shares, and he intends to sell them in the next six months if the company doesn’t complete a turnaround.

“If you’re not making any money and you’re not doing what needs to be done to make the company money or your company do well, I have to move on. It’s just, that’s the way,” Gerber told Business Insider.

Gerber added that the company has to put more focus on advertising and improving its sales in order for its stock not to be considered overvalued.

“I see the stock as really overvalued right now because I don’t think they make any of their numbers,” he explained. “I don’t see how they sell more cars with this current strategy.”

Tesla climbed almost 4% on Friday to close at $214.11 per share. The company is 18.67% down from its year-high $263.26 in early July.

The post Early Tesla Investor is Looking to Sell EV Maker’s Stock If There is No Turnaround appeared first on theprimarymarket.com.

According to a report by Reuters, Tesla approached the Canadian government and asked for lower import tariffs on its EVs made in its factory in Shanghai, China. At the moment, the only Chinese-made EVs imported in Canada are the Tesla Model 3 compact sedan and the Tesla Model Y crossover.

Tesla previously made a similar request to the European Union and was successful. The EU imposed an import tariff of 36.3% on EVs made in China but gave Tesla a break with a lower rate of 9%.

It appears that Canada wasn’t interested in giving Tesla the same treatment as the EU, at least not at the moment. The 100% import tariff is currently scheduled to come into effect on October 1.

Canada’s move follows the same reasoning as similar decisions previously made by the United States and EU. The EV makers in China get large subsidies from the government, which allows them to sell their products at significantly lower prices than EV makers in other countries. This comes with a risk of disrupting global fair trade, something that Canada, the US, and the EU are hoping to prevent with high import tariffs.

The post Tesla Asked Canada for Lower Import Tariffs on Its EVs Made in China appeared first on theprimarymarket.com.

According to automotive experts, the move is likely prompted by the fact that the more expensive versions of Cybertruck haven’t drawn enough interest. One clue is a short delivery time, which means the company currently has plenty of units in its inventory.

Cybertruck All-Wheel Drive, which costs $99,990, comes with dual motor and has a range of 318 miles. According to Tesla’s official website, customers can expect their cars delivered in September or August.

The tri-motor Cyberbeast version, which costs $119,990 and has a 301-mile range, has an estimated delivery date set to October and November.

Meanwhile, the now unavailable cheapest Cybertruck previously came with estimated delivery dates in 2025.

Tesla had big plans for Cybertruck when the model was first introduced in 2019. At the time, the company predicted it would have a 500-mile range and cost around $40,000. However, the production of the model experienced a number of obstacles, and the first units were delivered in 2023. By that point, more than two million reservations had been placed for the model.

The post Tesla is No Longer Taking Orders for Cheapest Cybertruck appeared first on theprimarymarket.com.

According to Morgan Stanley’s analysts, Tesla has a huge upside thanks to its energy business, which is projected to become more valuable than the company’s EV business in the future. Additionally, Tesla is expected to continue raking in zero-emission vehicle (ZEV) credit revenue as legacy automakers like Ford scale down their EV expansion plans.

Tesla also received points for successfully conducting cost-cutting and restructuring operations.

“We estimate Tesla may account for as much as half the credit sales in the market, supporting a 100% margin business for Tesla that may not be anticipated by the investment community at this time,” Morgan Stanley analysts said in a note shared with clients.

Tesla’s stock plunged by 13% last week after the EV maker shared weaker-than-expected second-quarter earnings. The company reported $0.52 in adjusted earnings per share compared to $0.62 expected by analysts, although it’s $25.50 billion in revenue topped the estimates of $24.77 billion.

However, Tesla shares are on their way to bounce back this week. The stock jumped by 5.60% after Morgan Stanley’s note and closed at $232.10 per share.

The post Morgan Stanley Names Tesla Its “Top Pick” in the U.S. Automotive Industry appeared first on theprimarymarket.com.

The S&P 500 remained stagnant, hovering around the 5,560 mark, while the tech-heavy Nasdaq 100 slipped by 0.2%. The Dow Jones Industrial Average remained relatively unchanged. Bloomberg Magnificent 7 Total Return Index edged 0.2% higher, while the MSCI World Index remained relatively unchanged.

Data from Bloomberg Intelligence showed that the five biggest U.S. tech companies are expected to show signs of struggling this season, with the cluster’s combined profits projected to rise 29% for the quarter compared to the same period the previous year. Still, U.S. tech companies’ resolve during difficult economic conditions could drive investor optimism.

“We expect the earnings season to bolster confidence in the equity market,” Solita Marcelli from UBS Global Wealth Management observed. “While markets could be choppy in the near term, after a period in which investor positioning had become overextended, we believe fundamentals remain strong.” Barclays Plc expects solid tech profits this year, raising its its year-end target for the S&P 500 from 5,300 points to 5,600 as a result.

The post S&P 500 Rally Stalls Ahead of Earnings Season appeared first on theprimarymarket.com.

During the recent rally, Tesla’s shares jumped 33% and reached $271 per share at one moment, marking their highest point since September. However, news that the previously planned unveiling of the company’s highly anticipated robotaxi was pushed back to October caused the stock to lose more than 12% of its value.

Now, UBS analysts are advising their clients that it is time to sell their Tesla holdings. According to a note sent on Friday, the company’s shares have taken off “too much, too soon” thanks to its perceived artificial intelligence potential, which isn’t guaranteed to come to fruition.

“If market enthusiasm for AI diminishes, this may impact Tesla’s multiple,” said UBS in the note.

Tesla’s stock slightly recovered after the initial plunge and closed at $248.23 per share on Friday. This is still a lot higher than UBS’s price target. The investment bank’s analysts have adjusted their price target on the stock from $197 to $147 per share after downgrading it from “Neutral” to “Sell”.

The post UBS Downgrades Tesla to Sell After Company’s Winning Streak Ends appeared first on theprimarymarket.com.

Tesla initially planned to produce a brand new model that would cost $25,000 before changing course in order to focus on the development of robotaxis. Instead, the carmaker decided to offer a “stripped-down” version of its popular Model Y that was slated to start production in the first half of 2025. This affordable model would be smaller and come with fewer features while being 20% cheaper to produce compared to the original.

Tesla still plans to produce 250,000 units of cheaper Model Y in the United States in 2026. However, the start of production will come at least a few months later than the company envisioned. The reasons for the delay remain undisclosed.

The EV giant reportedly also plans to produce the lower-cost Model Y in China and Europe while working on a cheaper version of Model 3 that will launch at a later date. 

The decision to introduce affordable models is part of Tesla’s strategy to address the slumping sales that the company faced in early 2025. It previously reported a 13% drop in sales for the first three months of the year, marking its worst quarter since 2022. Tesla’s stock has taken a hit as a result, being 36.36% down year-to-date.

The post Tesla Delays the Launch of U.S.-Made Affordable EV appeared first on theprimarymarket.com.

Musk increased his wealth by $20 billion thanks to the stock jump of the electric vehicle company Tesla and insider shares sales in space technology company SpaceX. Musk founded both companies and is currently their CEO.

Tesla stock closed at an all-time high of $424.77 per share on Wednesday after six straight days of gain. The EV company’s shares are 70.99% up year-to-date and reached a record for the first time since 2021.

Meanwhile, SpaceX sold $1.25 billion worth of shares during an insider sale. This gives the company a valuation of $350 billion, making it the most valuable startup in the world.

Bloomberg estimates that Musk’s net worth increased by $62.8 billion on Wednesday, making it the largest one-day wealth gain on record. His total net worth increased by $218 billion in 2024 alone and is now believed to be around $447 billion.

Besides Tesla and SpaceX, Musk’s net worth has also been boosted by ownership of the social media platform Twitter and artificial intelligence startup xAI. While Twitter is now valued at $12.32 billion compared to the $44 billion price Musk paid for it in April 2022, xAI has almost doubled in value in recent months and is now estimated to be worth $50 billion.

The post Elon Musk Becomes First Individual to Reach Net Worth of $400 Billion appeared first on theprimarymarket.com.

Tesla narrowly missed the analysts’ estimates on revenue, reporting $25.18 billion for the third quarter compared to the expected $25.4 billion. However, the figure represents an 8% year-over-year increase and improvement on $25.05 billion it had in the second quarter.

The company’s adjusted earnings per share, on the other hand, came at $0.72 to beat the estimates of $0. 58. Its margin figure was at 19.8% versus the expected 16.8%, accompanied by an adjusted net income of $2.5 billion and $2.9 billion in free cash flow.

“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” Tesla stated in a press release.

Tesla also said that the preparations for offering new vehicles are “underway,” sharing that the highly-anticipated affordable model, which is rumored to have a price below $30,000, will launch in the first half of 2025. Company’s CEO Elon Musk added during an earnings call that the expected volume growth in 2025 will be between 20% and 30%.

The investors welcomed the news, causing Tesla’s stock to surge 21.92% and close at $260.48 per share. This marked the stock’s best day in 11 years. It also brought the company’s shares 4.85% up year-to-date.

The post Tesla Stock Surges Close to 22% on Strong Earnings, Cheaper EV Model Timeline appeared first on theprimarymarket.com.

Tesla said it produced 469,796 EVs and delivered a total of 462,890 units from July to September, with the latter being an increase of 6.4% compared to the same period in 2023. However, the mark came below of the analysts’ expectations on multiple levels. Analysts polled by FactSet expected 463,310 deliveries, while analysts polled by LSEG had 469,828 deliveries penciled in.

Despite the miss, there are some positives for Tesla, considering that this was the first growth in deliveries it had seen in 2024. It previously had a 6.5% slide in global deliveries for the first half of the year.

Still, these numbers make it unlikely that Tesla will manage to clear CEO Elon Musk’s goal of surpassing the record of 1.8 million cars delivered in 2023. The EV maker delivered 1,293,656 units in the three quarters and would have to also have a record fourth quarter by a significant margin to get there.

Investors were not particularly pleased with Tesla’s delivery report as the company’s stock dropped by 3.5% on Wednesday to close at $249.02 per share. This resulted in all of the stock’s gains in 2024 being wiped out.

The post Tesla Stock Slides After EV Maker Misses on Q3 Deliveries appeared first on theprimarymarket.com.

Tesla’s struggles and the erratic behavior of its outspoken CEO, Elon Musk, are now making even the company’s most determined backers question their position. One of them is early Tesla investor and EV maker’s longtime backer Ross Gerber, the CEO of financial planner Gerber Kawasaki.

In a recent interview with Business Insider, Gerber said that his clients are pleading with him to exit the company’s position in Tesla. He already started meeting those requests, selling half of Gerber Kawasaki’s Tesla holdings.

Gerber says his firm currently owns $60 million in Tesla shares, and he intends to sell them in the next six months if the company doesn’t complete a turnaround.

“If you’re not making any money and you’re not doing what needs to be done to make the company money or your company do well, I have to move on. It’s just, that’s the way,” Gerber told Business Insider.

Gerber added that the company has to put more focus on advertising and improving its sales in order for its stock not to be considered overvalued.

“I see the stock as really overvalued right now because I don’t think they make any of their numbers,” he explained. “I don’t see how they sell more cars with this current strategy.”

Tesla climbed almost 4% on Friday to close at $214.11 per share. The company is 18.67% down from its year-high $263.26 in early July.

The post Early Tesla Investor is Looking to Sell EV Maker’s Stock If There is No Turnaround appeared first on theprimarymarket.com.

According to a report by Reuters, Tesla approached the Canadian government and asked for lower import tariffs on its EVs made in its factory in Shanghai, China. At the moment, the only Chinese-made EVs imported in Canada are the Tesla Model 3 compact sedan and the Tesla Model Y crossover.

Tesla previously made a similar request to the European Union and was successful. The EU imposed an import tariff of 36.3% on EVs made in China but gave Tesla a break with a lower rate of 9%.

It appears that Canada wasn’t interested in giving Tesla the same treatment as the EU, at least not at the moment. The 100% import tariff is currently scheduled to come into effect on October 1.

Canada’s move follows the same reasoning as similar decisions previously made by the United States and EU. The EV makers in China get large subsidies from the government, which allows them to sell their products at significantly lower prices than EV makers in other countries. This comes with a risk of disrupting global fair trade, something that Canada, the US, and the EU are hoping to prevent with high import tariffs.

The post Tesla Asked Canada for Lower Import Tariffs on Its EVs Made in China appeared first on theprimarymarket.com.

According to automotive experts, the move is likely prompted by the fact that the more expensive versions of Cybertruck haven’t drawn enough interest. One clue is a short delivery time, which means the company currently has plenty of units in its inventory.

Cybertruck All-Wheel Drive, which costs $99,990, comes with dual motor and has a range of 318 miles. According to Tesla’s official website, customers can expect their cars delivered in September or August.

The tri-motor Cyberbeast version, which costs $119,990 and has a 301-mile range, has an estimated delivery date set to October and November.

Meanwhile, the now unavailable cheapest Cybertruck previously came with estimated delivery dates in 2025.

Tesla had big plans for Cybertruck when the model was first introduced in 2019. At the time, the company predicted it would have a 500-mile range and cost around $40,000. However, the production of the model experienced a number of obstacles, and the first units were delivered in 2023. By that point, more than two million reservations had been placed for the model.

The post Tesla is No Longer Taking Orders for Cheapest Cybertruck appeared first on theprimarymarket.com.

According to Morgan Stanley’s analysts, Tesla has a huge upside thanks to its energy business, which is projected to become more valuable than the company’s EV business in the future. Additionally, Tesla is expected to continue raking in zero-emission vehicle (ZEV) credit revenue as legacy automakers like Ford scale down their EV expansion plans.

Tesla also received points for successfully conducting cost-cutting and restructuring operations.

“We estimate Tesla may account for as much as half the credit sales in the market, supporting a 100% margin business for Tesla that may not be anticipated by the investment community at this time,” Morgan Stanley analysts said in a note shared with clients.

Tesla’s stock plunged by 13% last week after the EV maker shared weaker-than-expected second-quarter earnings. The company reported $0.52 in adjusted earnings per share compared to $0.62 expected by analysts, although it’s $25.50 billion in revenue topped the estimates of $24.77 billion.

However, Tesla shares are on their way to bounce back this week. The stock jumped by 5.60% after Morgan Stanley’s note and closed at $232.10 per share.

The post Morgan Stanley Names Tesla Its “Top Pick” in the U.S. Automotive Industry appeared first on theprimarymarket.com.

The S&P 500 remained stagnant, hovering around the 5,560 mark, while the tech-heavy Nasdaq 100 slipped by 0.2%. The Dow Jones Industrial Average remained relatively unchanged. Bloomberg Magnificent 7 Total Return Index edged 0.2% higher, while the MSCI World Index remained relatively unchanged.

Data from Bloomberg Intelligence showed that the five biggest U.S. tech companies are expected to show signs of struggling this season, with the cluster’s combined profits projected to rise 29% for the quarter compared to the same period the previous year. Still, U.S. tech companies’ resolve during difficult economic conditions could drive investor optimism.

“We expect the earnings season to bolster confidence in the equity market,” Solita Marcelli from UBS Global Wealth Management observed. “While markets could be choppy in the near term, after a period in which investor positioning had become overextended, we believe fundamentals remain strong.” Barclays Plc expects solid tech profits this year, raising its its year-end target for the S&P 500 from 5,300 points to 5,600 as a result.

The post S&P 500 Rally Stalls Ahead of Earnings Season appeared first on theprimarymarket.com.

During the recent rally, Tesla’s shares jumped 33% and reached $271 per share at one moment, marking their highest point since September. However, news that the previously planned unveiling of the company’s highly anticipated robotaxi was pushed back to October caused the stock to lose more than 12% of its value.

Now, UBS analysts are advising their clients that it is time to sell their Tesla holdings. According to a note sent on Friday, the company’s shares have taken off “too much, too soon” thanks to its perceived artificial intelligence potential, which isn’t guaranteed to come to fruition.

“If market enthusiasm for AI diminishes, this may impact Tesla’s multiple,” said UBS in the note.

Tesla’s stock slightly recovered after the initial plunge and closed at $248.23 per share on Friday. This is still a lot higher than UBS’s price target. The investment bank’s analysts have adjusted their price target on the stock from $197 to $147 per share after downgrading it from “Neutral” to “Sell”.

The post UBS Downgrades Tesla to Sell After Company’s Winning Streak Ends appeared first on theprimarymarket.com.