Tesla (NASDAQ:TSLA) fans are seeing some good news this morning. Recently, the electric vehicle (EV) innovator announced the launch of its Model Y Standard Range. At present, the EV is only available to company employees. However, this development is still great for investors; TSLA stock has been rising all morning as enthusiasm for the new electric SUV generates momentum.
This morning, TSLA stock shot up almost immediately on the news. As of this writing, it is up around 2% for the day — and it doesn’t appear to be slowing down.
Tesla first debuted the Model Y Standard Range SUV at last week’s Cyber Rodeo. While addressing the crowd, CEO Elon Musk said Tesla would be delivering some built-in-Texas EVs that night. Less than a week later, the company is gearing up to put more Model Ys on the road. Electrek reports that Tesla plans on allowing non-employees to purchase their own models “in the coming weeks.”
What’s Happening with TSLA Stock?
Anyone who follows Tesla knows how new vehicle news can push shares up. That much happened when Musk provided an update on the long-awaited Cybertruck at the Berlin factory opening. Yesterday, the company also opened reservations for the Roadster, exciting fans. Now, although not as flashy or futuristic, the new Model Y SUV is demonstrating that Tesla is moving forward with its expansion.
Elon Musk emphasized the importance of the new Model Ys at the Cyber Rodeo. Specifically, the CEO stated that Gigafactory Texas would ultimately become “the highest-volume car factory in America,” producing more than 1 million vehicles per year. Of that number, Musk also said 500,000 would be Model Ys. Today, it appears Tesla is already working hard to deliver on that promise.
Currently, the Model Y Standard Range is priced at $59,990. The vehicle comes with structural battery pack technology, including Tesla’s new 4680 battery cells. What may excite U.S. consumers more, though, is the fact that this is the first Tesla model to be built in Texas. Anyone who wants to see a revitalization of auto manufacturing in the U.S. has to give the company credit.
What It Means
Looking forward, Tesla’s popularity and brand remain unmatched. The company managed to set a new sales record in the first quarter of 2022 while others struggled with supply-chain constraints. Now, today’s news is a reassuring sign that Tesla is well-equipped to keep pace.
TSLA stock isn’t a buy just on the new Model Y progress, either. On top of today’s good news, the company has several more exciting catalysts ahead. These range from a proposed stock split to the start of production for both the Cybertruck and Roadster. All in all, investors should be watching shares closely.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.