Tesla investors will seek more details regarding the brand's lower-priced model when it reports quarterly insight on Wednesday, according to Reuters.
Some expect the less-expensive car to improve and benefit the automaker's company in terms of hitting their goal of a 30% increase in deliveries this year.
Since President Donald Trump won the past election, with the financial support of Tesla CEO Elon Musk, the stock market assessment has seen an increase of more than 60% to $1.3 trillion, Global Banking and Finance said.
In 2024, Tesla endured its first decline in annual deliveries as it faced extreme competition with companies in China such as BYD, according to Reuters.
Tesla has yet to provide large upgrades to its now aging collection of automobiles in the U.S., and is depending on the Cybertruck electric pickup truck to increase sales, Global Banking and Finance said.
Source: Karan Singh, Not a Tesla App
The company officially launched an updated version of its best-selling Model Y crossover SUV on Thursday, building on the recent introduction in China to enhance its appeal and attract new customers.
"As the opportunity for growth from Tesla's existing lineup appears quite limited, Tesla's new low-cost model remains crucial to Tesla's plan for growth, even if not to the extent of the prior 20-30% y/y target," Barclays analyst Dan Levy said in a research note.
In April of last year, Tesla said that it would launch less expensive models as a pivot from ambitious goals of producing an all-new model that was set to cost $25,000.
"It is unclear whether the new model will qualify for a $7,500 U.S. rebate, which could make the net cost to consumers higher, and we don't know how different the new offering might be, and whether it might cannibalize existing Model Y sales," said David Wagner, portfolio manager at Tesla investor Aptus Capital Advisors.
Analysts project that Tesla will sell 2.1 million cars this year, representing an increase of approximately 16%. This forecast is based on a poll of 20 analysts conducted by LSEG.
Last year, Tesla's deliveries saw a slight decline, attributed to an aging model lineup and increasing competition in China and Europe from established automakers, Reuters said.