Some analysts on Wall Street believe Tesla entrance into the Crossover domain is a bad news for the company’s hot selling Model 3, and might bite Tesla upcoming earnings.
Tesla Model 3 electric compact vehicle smashed all records in 2019, setting the record straight as the best-selling luxury vehicle in the U.S. The Model 3 is without no doubt one of the best-selling passenger cars of any kind in USA.
Tesla Model Y was unveiled in March 2019, and planned to begin deliveries in March 2020. It is the second vehicle based on the Model 3 sedan platform.
“On the surface, demand for Model Y appears promising, there is a striking physical similarity between the Model 3 and Model Y and with the Model Y being more a Coupe than an SUV.” – Bernstein analyst Toni Sacconaghi.
“Currently, 20% of Model 3 trade-ins in the U.S. are SUVs,” wrote Ferragu in a recent research report. “We expect the launch of Model Y to cannibalize Model 3 sales by that order of magnitude.”
Pierre Ferragu of New Street downgraded Tesla Stock to Hold from Buy, without a price target. Joseph Spak of RBC Capital recently downgraded the Tesla Stock to Sell and a price target of $530, five days ago.
Do you agree with these analysts that Model Y is going to be a bad market for Tesla?. Please share your opinion with us in the comment section.