Tesla fans were pretty excited about the unveiling of the all-new Model Y, but it appears that enthusiasm didn’t spread to Wall Street. Quite the opposite, in fact.
Tesla stock closed more than five percent down on Friday following the Model Y’s unveiling. While the crossover has a lot going for it, analysts and investors weren’t happy.
CNBC monitored the reaction and noted that Deutsche Bank’s Emmanuel Rosner “found the event somewhat underwhelming with no major surprises.” Morgan Stanley analyst Adam Jonas also suggested the similarities between the Model 3 and Model Y will cause the crossover to cannibalize sales of the entry-level sedan.
Barrons pointed out that a team of Cowen analysts were particularly brutal as they felt the crossover wasn’t exciting enough to increase demand or enthusiasm for Tesla. They also labeled the event a “capital raising effort and [a] branding exercise.”
Others were unhappy with the timeline as the first deliveries aren’t slated to begin until the fall of 2020. Customers wanting the entry-level model will have an even longer wait as the $39,000 variant isn’t slated to be launched until the spring of 2021.
Panoramic glass roof on Model Y
— Tesla (@Tesla) March 15, 2019
While Wall Street wasn’t impressed, there’s little doubt that a mid-size crossover is good idea for Tesla. Consumer preferences have shifted away from sedans and virtually every automaker, from Ford to Ferrari, is responding accordingly.
As a quick recap, the Model Y starts at $39,000 and will have a range of 230 miles (370 km). The Long Range variant begins at $47,000 and can travel up to 300 miles (483 km) on a single charge. The Long Range crossover can also be equipped with an optional dual-motor all-wheel drive system, but has a 20-mile (32 km shorter range.
The range-topping Model Y Performance starts at $60,000 and features the all-wheel drive system as standard. It can rocket from 0-60 mph (0-96 km/h) in 3.5 seconds, hit a top speed of 150 mph (241 km/h) and travel approximately 280 miles (451 km) on a single charge.
Which is all nice and dandy, but the design might be an indication that Tesla is indeed looking to capitalize on the Model 3’s success and couldn’t be bothered with putting in more effort. For reference, check out Jaguar’s I-Pace – or Tesla’s own Roadster…