Tesla (TSLA) is canceling plans for Tesla’s Model S Plaid Plus, according to a tweet late Sunday by CEO Elon Musk. Tesla shares have reversed higher for slim gains.
The car is expected to sell in about a year and cost close to $150,000. Tesla still plans to produce the Plaid, which is about $30,000 cheaper. The company will hold a delivery of the Model S Plaid on June 10. After months of delayed Model S deliveries amid a facelift
Tesla CEO Musk tweeted that Plaid+ was canceled because “it wasn’t necessary because Plaid was so good.”
“This is not the news the streets want to hear,” Wedbush analyst Daniel Ives said in an email to IBD. But it felt like a dog eating homework.”
If the battery problem is caused by the Model S Plaid Plus not being produced, plans for Tesla’s Cybertruck and Semi look unlikely. Musk also said the same 4680 cells will be used in some Model Y crossovers.
Musk has previously claimed that the Plaid+ can run more than 500 miles on a single charge. Compared to the standard Plaid, it’s designed to run 390 miles.
The extended range gives it bragging rights over the high-end Lucid Air made by Lucid Motors, with a variable range of up to 517 miles.
Led by former Tesla chief engineer Peter Rawlinson, Lucid Motors is expected to deliver its first EV, the luxury Lucid Air sedan, later this year. The initial Dream Edition will cost $169,000 and can drive 503 miles per hour. charge one time
On February 23, Special Acquisition Company (SPAC) Churchill Capital Corp IV (CCIV) announced it is taking Lucid to the public in a deal that values Lucid at $24 billion. Lucid will be traded under the ticker symbol LCID. The deal is expected to close at the end of the second quarter.
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The stock rose 1% to 604.13 on the stock market today. It recovered from an intraday low of 582.88 to close a penny below its 200-day moving average. MarketSmith chart analysis shows Tesla shares fell below the 200-day line last week. The stock is about 35 percent below a record high of 900.40, notching on Jan. 25.
Tesla’s line of relative strength has a downward trend. Its RS score is 89 out of a possible 99, while its EPS score is 74.
Meanwhile, CCIV shares rose nearly 11%.
Among the automakers with more and more EVs General Motors (GM) down 0.2% and Ford (g) 0.7%. Volkswagen (VWAGY) up 1.9%
Tesla’s Chinese competitor Nio (NIO) up 4.15%, Xpeng (XPEV) up 3.4% and Li Auto (LI) pops 4.1%
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Tesla’s ‘busy months’
A global chip shortage has forced Tesla to make difficult manufacturing decisions, Ives said.
“The past few months have changed dramatically for Tesla. And this will add power to the overall turbulence,” he said.
Tesla orders fell nearly 50% in May compared to April. Data reported last week, citing internal data. That comes amid weeks of consumer complaints about Tesla’s safety and Tesla’s perceived arrogance. which is heavily covered in the Chinese state media. in April Tesla’s China deliveries, excluding exports, were down two-thirds compared to March’s 11,671, according to data from the trade group.
“Musk & Co. has clearly encountered serious problems in the region. There are concerns about the safety of automated driving systems. chip shortage Negative Public Relations Issues And the crackdown by Beijing over the Tesla story all contributed to this weakening of demand,” Ives wrote in a note to clients.
Early Tuesday, investors should get China’s electric car sales in May. This includes the first reading of Tesla’s sales in that key market. Those Tesla sales likely reflect orders from the previous month.
Tesla has also removed some radar sensors and waist support features from its Model 3 and Model Y cars in the United States, possibly due to a semiconductor supply issue.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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