Tesla, Inc. shares experienced a significant surge on Monday, driven by the company’s teaser for a Tuesday event. The electric vehicle maker is expected to discuss a more affordable EV model, fueling speculation and excitement among investors.
The Teaser
A nine-second video posted by Tesla on X showed a vehicle with its headlights illuminated against a dim background, followed by another clip ending with “10/7.” This teaser suggests that the company is set to release a new product, potentially a lower-cost vehicle to help sustain sales momentum.
Background
In June, Tesla announced that it had completed the “first builds” of its lower-cost Model Y and planned to begin selling the vehicle in the fourth quarter. The new version of the vehicle is designed to be roughly 20% cheaper to produce than the refreshed Model Y and could scale to about 250,000 units annually in the U.S. by 2026.
Record Deliveries and Tax Credit Expiration
The teaser from Tesla follows the company’s record third-quarter deliveries, driven by a surge in EV purchases ahead of the expiration of the $7,500 U.S. tax credit on September 30. The tax credit expiration appears to be further fueling speculation about a lower-cost vehicle.
Analyst Expectations
Despite the recent surge in deliveries, analysts expect Tesla’s annual deliveries to decline for a second straight year to around 1.62 million vehicles. This decline is attributed to expiring incentives and a slowdown in demand linked to CEO Elon Musk’s polarizing politics. However, Wall Street expects Tesla’s deliveries to rise to 1.85 million vehicles next year.
Upcoming Financial Results
Tesla is due to report financial results for the third quarter on October 22. Analysts expect the company to report earnings of 51 cents per share and revenue of $25.58 billion.
Stock Performance
At the time of publication on Monday, Tesla shares were up 4.37% at $448.64.
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The event has sparked excitement among investors and fans of the company.