Tesla Inc.'s newly revealed Y model failed to excite Wall Street, with some investors claiming that the crossover vehicle presentation took place as an advertising spot that sought to mask the weak Model 3 demand and a taken in cash.
The shares of TSLA, -4.84%
fell by almost 4% on Friday and fell by more than 5% from the time the chief executive Elon Musk announced the vehicle unveiling date on Twitter. The crossover starts at $ 47,000 and the order requires a deposit of $ 2,500, which is more than required by Tesla at the time of disclosure of Model 3.
See also: L & # 39 ; Tesla's Elon Musk unveils the Model Y crossover, with a price of $ 47,000
. At the end of that same Thursday, Musk said he expected to sell more Model Ys than Tesla's other vehicles put together. The production of cars is expected to start at the end of 2020 and it is expected that by 2021
"We remain concerned about production timing," said Toni Sacconaghi with Bernstein. The target for the end of 2020 is similar to that of models 3, and in the end the sedan was delayed by 9-12 months, he said.
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The most expensive deposit could also fuel the bearish sentiment on the monetary situation of Tesla, said Sacconaghi. Ordering a model 3 at launch required a $ 1,000 deposit.
Model Y orders could be "deactivated," Joseph Spak told RBC Capital Markets. "The vehicle hasn't been available for almost two years and consumers might realize that putting money down for Model 3 upfront hasn't brought many benefits," he said.
The biggest question is how much the Model Y will cannibalize the Model 3, which could be significant since the crossover SUVs are more popular than the sedans, Spak said.
Unlike previous discoveries, there was "no" other "thing" that many expected, "he said. Spak also questioned Tesla's strategy of showing the vehicle now against revealing it closer to the start of production.
Roth Capital Partners analysts, led by Craig Irwin, had their answer to this question: "The Model Y launch event was likely pulled forward to distract from the weak demand for Model 3", they said.
Related: That's why the announcement by Tesla's Model Y is "forage for bears"
"Tesla must now provide unitary growth for stocks to function, in our opinion, "Roth analysts said.
The evening "had no surprises" and played like a commercial for Tesla without just the moment, said Jeffrey Osborne to Cowen. There was nothing to alleviate the anxiety around the slowdown in demand, no Model S and Model X updates and no color around the first quarter results.
"We believe that the event was more an effort to increase the capital and the exercise of the brand. We do not see the new Y model that accelerates demand or high enthusiasm for the Tesla brand", they have He said.
Tesla's shares have fallen by 15% in the last 12 months, while the S & P 500
SPX, + 0.59%
gained 2.9% and the Dow Jones Industrial Average
DJIA, + 0.60%