Tesla stock Rises on Teaser Videos Hinting at New Vehicle
October 7, 2024 – Tesla shares rose more than 5% on Monday after the electric vehicle maker posted teaser videos on X, sparking speculation about a potential new car release.
The first video, posted on Sunday, depicts a spinning component, leading many online to believe it could be an internal vehicle part. It concludes with the numbers “10/7,” indicating Tuesday’s date. A second video,also posted Sunday,shows only the headlights of a car.
The teasers have fueled discussion among analysts and online observers, with two primary theories emerging: the unveiling of the next-generation Roadster or a long-awaited mass-market model.
Tesla CEO Elon Musk initially teased the next-generation Roadster concept at an event in November 2017 and further discussed it in tweets in June 2018.He reiterated its significance in September, stating on X that “the new Roadster is something special beyond a car.” Musk has a track record of delayed or unfulfilled promises.
Tesla has also indicated plans for a more affordable vehicle this year, which Musk has described as a “stripped down Model Y” with a price tag under $30,000.
Investors view a mass-market model as crucial for revitalizing Tesla’s sales. While the company reported a jump in auto deliveries in the third quarter of 2024, this was largely attributed to the expiration of a federal tax credit.prior to that, Tesla experienced a delivery decline.
The company is currently facing a sales slump in europe and increased competition in China from domestic manufacturers like BYD, which are also expanding internationally. These competitors are launching lower-cost models in europe and other markets, increasing pressure on Tesla to release a vehicle in the $25,000 to $30,000 price range.
Tesla shares have recovered after a challenging first quarter, during which the stock fell 36%. Following a 40% rally in the third quarter, the stock is currently up 12% for the year.
