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Tesla Crossover Model Y Might Be Bad News – Stock Downgraded

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.

2 comments

  1. Many people have waited for the Model Y and some Youtubers I follow will trade in their Model 3 for a Model Y (Everyday Astronaut, Tim Dodd and Teslanomics Ben Sullins), So this in itself might be correct.. BUT demand for Tesla is so huge, they will sell every Model 3 and Model Y they produce anyways… Model Y will certainly also bring in brand new customers who have been waiting for this… How many reservations there are for the Model Y ($2000 deposit required, which is a lot!) has never been published by Tesla.

    I have the strong impression Tesla does not want to hype up the Model Y too much, to temper demand somewhat so they actually can keep up!

    Liked by 1 person

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