'Not Good' For Tesla If It's True, Says Fund Manager, As New Report Says EV Maker Has Put Sub-$30K Vehicle On Hold
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ: TSLA) has reportedly put on hold the development of its proposed $25,000 electric vehicle, known as Model 2 or codenamed NV9, according to Electrek. This decision comes amid a round of massive layoffs, including high-profile executives, and a shift in focus towards the self-driving project. CEO Elon Musk had previously emphasized the importance of the low-cost EV and its production at Giga Texas and Giga Mexico, aiming for a second-half of 2025 start. However, the project's defunding and the layoffs of team members involved raise concerns about Tesla's future growth, particularly as the Model 2 vehicle and its sub-$30,000 price point were seen as crucial for driving mass demand globally.
April 16, 2024 | 2:45 am
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Tesla's decision to halt the development of its $25,000 Model 2 EV and focus on self-driving projects, coupled with recent layoffs, may negatively impact investor sentiment and the stock's short-term performance.
The halt on the Model 2 development and the focus shift towards self-driving technology, especially after a round of layoffs, could raise concerns among investors regarding Tesla's future growth prospects and its ability to meet previously set goals for mass market expansion. This news, combined with the recent 5.59% drop in Tesla's stock price, suggests a negative short-term impact on the stock as it may affect investor confidence and perception of the company's growth trajectory.
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