Tesla early Friday in China launched the refreshed Model Y vehicle with a slightly longer range and higher price than the old Model Y. The "Juniper" Model Y has a clearly different front and back, as opposed to the minor exterior changes to the updated Model S, X and 3. TSLA shares fell Friday.
Deliveries of the new Model Y in due to start in March, pending regulatory approval in China, with Europe and the U.S. likely coming soon after. Tesla increased the Model Y prices by as much as 5% and also slightly raised Model 3 prices in China.
The sales deadline for the Model Y "Launch Series" is Feb. 28, with customers who order the vehicle before then getting an additional 2 years or 25,000-mile-extended warranty.
Meanwhile, on Tuesday in the U.S., the National Highway Traffic Safety Administration announced it opened an investigation into Tesla, citing "Actually Smart Summon sessions resulting in crashes during the session, including where the operator does not have enough time to react due to vehicle proximity or line of sight."
Federal regulators wrote they have received one complaint alleging that an Actually Smart Summon session resulted in a crash and has reviewed at least three media reports of apparently similar crashes. All four incidents involve Tesla vehicles operating in Actually Smart Summon failing to detect posts or parked vehicles, resulting in a crash, according to NHTSA.
Bank of America analyst John Murphy also on Tuesday downgraded Tesla stock to neutral from buy with a price target of 490, up from 400.
Murphy wrote that investor sentiment has "shifted more positively" in recent months and that catalysts around future growth drivers have been "more fully recognized." The analyst added that execution risk remains high and the stock is now trading at a level that captures much of the firm's long-term base case for potential from core autos, robotaxi, Optimus along with energy generation and storage.
Tesla Stock Performance
TSLA dropped a fraction to 394.74 during market action on Friday. On Wednesday, Tesla stock added 0.15% to 394.94, still below the 21-day line after Tuesday's 4.1% skid.
Shares consolidated after hitting a record 488.54 on Dec. 18, narrowing the distance above the 10-week line. Ideally, the EV giant would find support around its 10-week and 50-day moving averages or even forge a new base, based on MarketSurge chart analysis.
Tesla stock gained 62.5% gain in 2024, virtually all of that in the fourth quarter, especially after President-elect Donald Trump's election win.
TSLA stock is on the IBD Leaderboard watchlist.
Tesla stock ranks first in the 35-member IBD Auto Manufacturers industry group. The stock has a 90 Composite Rating out of a best-possible 99. Shares also have a 96 Relative Strength Rating and a 78 EPS Rating.
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