Tesla shares take a hit after unveiling their new EV, Model Y, falls down by 5 percent

Tesla shares take a hit after unveiling their new EV, Model Y, falls down by 5 percent

There is no doubt about the fact that Electric vehicles are the future of transportation and the first name that automatically comes to the mind when you are talking about them is Tesla. The company owned by the philanthropist entrepreneur, Elon Musk, has been a pioneer in this particular market. However, their new crossover utility vehicle, Model Y, that was unveiled recently, doesn’t seem to have found favor with a lot of people, with some even labeling the new launch as underwhelming. The negative buzz was reflected in their market share, which fell down by almost 5 percent just after launching the Model Y.

Electric vehicles are being considered as one of the hottest upcoming market of the future, which prompted Elon Musk to dive directly into it. The debut of Model Y was long-awaited and finally took place in the design studio of Tesla in Los Angeles. According to a reputed analyst from CFRA, Garrett Nelson, the car was pretty disappointing which led to the formation of “sell a news” situation. On Friday, the shares fell to $275.43, which is almost 5 percent lesser than the day earlier and Model Y may have had a big role to play in it. This brings the drop to almost 17 percent for Tesla for the year with losses close to almost $10 billion. The $47.6 billion-valued company is soon going to face stiff competition in this market from Ford and Ferrari.

The Model Y is basically a 7 seater with 66 cubic feet of boot space and a panoramic roof of glass which makes it a decent design. The main problem with the car is the inconsistency of the launch dates, according to Garrett. Initially, it was going to be the initial half of 2020 but it got postponed to fall of 2020 for the $60000 model and 2021 for the cheaper $39000 model. However, some analysts decided to do away with the associated issues and test drove the vehicle, citing it to be pretty impressive and not getting any feel of a crossover vehicle. This is definitely a good sign for Tesla and hopefully, things will improve for the better for them.

 

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