Tesla stock experienced sharp swings at the bourses on Friday, capping a week marked by new vehicle launches, another NHTSA probe, improving overseas sales, and investor anticipation ahead of quarterly earnings later this month.
Coming into Friday trading, Tesla stock was up roughly 8% year-to-date and 82% over the past 12 months, supported largely by optimism over the company’s artificial intelligence ventures, including its robo-taxi business launched in Austin, Texas, in June.
The electric-vehicle maker is set to report third-quarter results on October 22, with markets watching for updates on new product rollouts and order activity.
Lower-priced Tesla cars aim to broaden buyer base
Earlier in the week, Tesla introduced “Standard” variants of its Model 3 and Model Y, priced at about $37,000 and $40,000, respectively.
The new versions offer shorter per-charge ranges and fewer features than their premium counterparts, in an effort to appeal to a broader customer base amid slowing global sales.
Automotive data provider Edmunds, which test-drove the new vehicles, described them as strong offerings that retain the core Tesla experience.
“The new variant of the Model Y is the big surprise,” said Alistair Weaver, Edmunds’ editor-in-chief.
“For only a $5,000 price difference, questions remain about whether the new Standard trim is a good value or just slightly cheaper.”
Weaver noted that the Standard Model 3 delivers fewer compromises in driving quality, maintaining strong performance and sporty handling, while the Model Y’s lower-priced version sacrifices some refinement for cost savings.
The key question for investors is whether a few thousand dollars in price reduction will expand Tesla’s buyer pool or simply prompt existing customers to trade down to cheaper trims.
China and Europe sales pick up
Tesla’s latest monthly figures showed Chinese-made EV sales rising 2.8% year-on-year in September to 90,812 units, according to data from the China Passenger Car Association.
The uptick ended a two-month decline, helped by the launch of a new six-seater model in China.
The company also began its first deliveries to India last month — a significant milestone for its global expansion.
For the third quarter, Tesla delivered 241,890 Chinese-made vehicles, its fourth-highest quarterly total on record.
Globally, Tesla beat analyst expectations with record quarterly deliveries, driven by a rush of purchases ahead of the expiry of US EV tax credits at the end of September.
Deliveries of the new budget versions of the Model 3 and Y are slated to begin between December and January in several markets, though Tesla has yet to confirm China-specific timelines.
Tesla’s largest Chinese rival, BYD, reported its first quarterly sales decline since 2020, signalling potential fatigue after years of rapid expansion.
The downturn could offer Tesla breathing room in the world’s largest EV market, even as price competition remains fierce.
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