Elon Musk was acting fairly agitated recently and it wasn’t helping Tesla Inc (NASDAQ:TSLA). He has said that he was thinking of creating a website to go after journalist’s credibility, even though Musk himself has had own credibility issues. And yes, he has been getting in arguments with Wall Street analysts, but Tesla stock keeps bouncing back.
Tesla stock struggled at the beginning this year, flirting with a $47 billion market cap (which at the time actually was lower than General Motors Company’s (NYSE:GM) and roughly the same as Ford Motor Company (NYSE:F)). It’s back up around $55 billion now.
These kind of votes of confidence are probably why Musk is still pitching his company’s wares aggressively. Back in May he went on Twitter Inc (NYSE:TWTR) to buzz about the unveiling of the Tesla Model Y, which is a crossover SUV for the mainstream market. The photos released this week don’t have a ton more detail, but they’re keeping people interested.
He originally tweeted that the event would happen on March 15 of next year, which certainly is symbolic (this is when Julius Caesar was assassinated by his Senate).
Musk quickly backed off this, saying: “I just made that up, because the Ides of March sounded good.” Then he concluded that the unveiling could happen any time between “late this year to mid next year.”
OK then, the details on the Tesla Model Y are sketchy. Yet there is some information to gleams from earnings calls, annual shareholder meetings, social media and well, credible rumors!
Here’s a look:
Tesla Model Y Specification Details
As should be no surprise, Elon Musk has said that the Tesla Model Y “is going to be amazing,” but he has not gone much beyond this sort of vagueness.
Yet there are still some tidbits to go on if you’re looking to feel more confident in Tesla stock. For example, it appears that a recent YouTube video shows part of the Tesla Model Y (it is under a white tarp). The company also released a photo of the Tesla Y at last year’s shareholder’s meeting.
But there are some other interesting items:
- The vehicle is supposed to share some of the key components of the Model 3, such as the chassis, which the photos support.
- Since the car will be focused on the mainstream consumer, the price tag should be reasonable. Perhaps it could be around $35,000 or so.
- There may not be any door mirrors (instead, there will be sophisticated cameras), which still looks like the case.
- The Tesla Model Y will likely have the Falcon doors, which open upward. This can’t be determined from the new photos.
Oh, and something else: You currently cannot put a deposit on the vehicle.
The Model Y and Tesla Stock
While having cool cars is a great draw, they can be mind-numblingly difficult to manufacture. Musk has learned this the hard way with the extreme challenges of the production of the Model 3, which has been plagued by delays and mishaps.
Musk has said that he would pull off a “manufacturing revolution” with the Tesla Model Y. This will mean that the vehicle will not be produced in the Fremont plant, which is already overloaded.
But Musk also says he will rethink the workflows and the robotics. According to one of his tweets: “Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated.”
And as for when production will begin? Musk estimates that it will be in 24 months from now.The success or failure won’t make or break Tesla stock but it will have a significant effect.
But of course, if the past is any indication, this deadline will probably prove to be just the start of many!
Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.