Tesla, Inc. (NASDAQ:TSLA) shares are trading higher Monday after the company teased a Tuesday event where the electric vehicle maker is expected to discuss a more affordable EV model.
What To Know: Tesla posted a nine-second video on X showing a vehicle with its headlights illuminated against a dim background, followed by another clip ending with "10/7," suggesting the company is set to release a new product. The teaser fueled speculation that the company could unveil a lower-cost vehicle to help sustain sales momentum, per Reuters.
Tesla said in June that it completed the "first builds" of its lower-cost Model Y and planned to begin selling the vehicle in the fourth quarter. The new version of the vehicle is designed to be roughly 20% cheaper to produce than the refreshed Model Y and could scale to about 250,000 units annually in the U.S. by 2026.
The teaser from Tesla follows the company’s record third-quarter deliveries, which were driven by a surge in EV purchases ahead of the expiration of the $7,500 U.S. tax credit on Sept. 30. The tax credit expiration appears to be further fueling speculation about a lower-cost vehicle.
Despite the recent surge in deliveries, analysts expect Tesla's annual deliveries to decline for a second straight year to around 1.62 million vehicles, citing expiring incentives and a slowdown in demand linked to CEO Elon Musk's polarizing politics. Following the slowdown, Wall Street expects Tesla's deliveries to rise to 1.85 million vehicles next year.
Tesla is due to report financial results for the third-quarter on Oct. 22. Analysts expect the company to report earnings of 51 cents per share and revenue of $25.58 billion, according to Benzinga Pro.
TSLA Price Action: At the time of publication on Monday, Tesla shares were up 4.37% at $448.64, according to data from Benzinga Pro.
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