Tesla reveals ‘cheaper’ Model X SUV

Tesla (NASDAQ:TSLA) has put a cheaper version of its Model X SUV on the market. The car is still a luxury SUV and would cost $74,000. After a $7,500 federal tax credit it would then be worth $66,500. According to the Tesla’s website it would be worth just $768 a month. The car company has lowered its prices again for the second time after missing sale goals. The new version of the Model X crossover will be called the 60D.

The car has a 60 kilowatt hour battery for an estimate drive of 200 miles. According to Fortune, Tesla has been facing and dealing with a lot of problems. U.S. safety regulators have demanded that the company had over detailed information about the design, operation and testing of its Autopilot technology following a fatal crash that occurred on May 7. 

 According to Fortune, analysts and investors also have questioned the wisdom of Tesla’s proposed $2.8-billion takeover offer for SolarCity. Tesla Chief Executive Elon Musk is a major shareholder in both companies. Tesla’s main price car, the Model 3 will be in production starting late next year. There is already a waiting list which consists of 375,000 people who had to put down a $1,000 deposit. According to CNN, anyone who tries to put down a deposit today will expect to get their car in 2018.

Tesla has also ended a program that allows the resale value of its cars. The buyback program ended July 1. This allows Tesla to free up cash that has been set aside to buy back Model S cars. Barclays analyst Brian Johnson on Wednesday gave Tesla a D grade for their financial stewardship. Last month, the company cut the base price of its Model S sedan to $66,000.

On Wednesday, Barclays analyst Brian Johnson gave Tesla a D grade—just above failing—for financial stewardship, noting that Musk’s original 2006 masterplan “dug a $4.2 billion hole” for the company. Johnson reiterated the bank’s $165 share price target and “underweight” rating. Tesla also missed its sales targets for the second consecutive quarter and is expected to miss its full-year goal of 80,000-90,000 vehicles.

Tesla will also add a new car called the Model 3 sedan. It will be lower price and it will start around $35,000 and will go on sale in late 2017.

Tesla shares were down 0.28% in morning trading at $221.90.

Leave a Comment