Tesla revealed its Model S Plaid model at an event yesterday. The high-end electric car would be pitched against other luxury models.
The Model S along with Model X are among the older models in Tesla’s portfolio. The company did not produce these in the first quarter of 2021 as it was working to revamp the models. While the Model S/X are believed to be the more profitable models for Tesla, their share in total deliveries has been falling gradually even as the sales of more affordable Model 3 and Model Y are rising.
Tesla launches Model S Plaid
The Model S Plaid has a range of 390 miles and can accelerate from zero to sixty miles per hour in only two seconds. The specifications make it Tesla’s fastest car. The company also increased the price for the model and it would now start from $130,000. The model was initially set to be delivered in February but got delayed.
“We’re in production and gonna deliver the first 25 cars now, and then basically should be at several hundred cars per week soon and a thousand cars per week next quarter,” said Tesla’s CEO Elon Musk.
Tesla increasing vehicle prices
Notably, Tesla has had to increase vehicle prices several times this year amid rising input costs. Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially,” said Musk in a tweet in response to the price hikes.
It has also taken some other cost-cutting initiatives and has done away with the lumbar support in Tesla Model Y. According to Musk, “Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used.”
Input costs are rising
Higher input costs could play havoc with Tesla’s profitability. Despite making millions every quarter from the sales of carbon credit, Tesla’s net profit margin was only about 4% in the March quarter. Incidentally, if we remove the carbon credits and the $102 million gain that Tesla made on the sales of bitcoins in the quarter, the company actually would have posted a GAAP net loss in the quarter.
Electric cars
Musk has been championing the cause of electric cars. Until about a couple of years back, electric cars were seen as a fad. Mainstream automakers did not saw much value in electric cars and had a couple of electric models in the portfolio for the namesake.
However, things have changed over the last two years and now every automaker is focusing on electric cars. General Motors has committed itself to a zero-emission future by 2035. Other auto companies also have outlined aggressive plans to electrify their fleet.
At the event to reveal the Model S Plaid, Musk said that “There is something that’s quite important to the future of sustainable energy, which is that we’ve got to show that an electric car is the best car, hands down.”
Tesla Model S versus Mercedes EQS
Tesla Model S would compete with high-end electric cars. Mercedes will start delivering the all-electric EQS Model later this year. There is something that’s quite important to the future of sustainable energy, which is that we’ve got to show that an electric car is the best car, hands down,”
Also, Lucid Motors would start delivering its Lucid Air later this year. The model would be pitched against Tesla’s Model S. Also, NIO would also launch its premium electric cars in the US sometime in the future. The Chinese electric vehicle maker is entering the Norway market, its first market outside of China.
Tesla canceled Model S Plaid plus
Talking of Tesla Model S, the company decided to stop the high-end Plaid+ model as the plaid model “is just so good” according to CEO Elon Musk. The Plaid+ model was expected to have a driving range of 520 miles.
Meanwhile, the competition is heating up in the electric vehicle industry. On one hand, we have established pure-play electric vehicle companies like Tesla, NIO, Li Auto, and XPeng.
We also have a flurry of startup electric vehicle companies that are currently in the preproduction stage. However, over the next two years, we’ll have a lot of new all-electric models from these companies.
Ford
Also, legacy automakers like Ford, General Motors, and Volkswagen have raised their game. Legacy automakers’ all-electric models have received a good response from the market. The latest on the list is the Ford F-150 Lightning Model which has received very good reviews. The ICE (internal combustion engine) model was America’s best-selling pick-up for the last many years and the new all-electric model looks set to give a tough fight to other electric pick-up trucks. Canoo has also announced a pickup truck. Tesla’s Cybertruck would also be available sometime next year.
Apple is also said to be working on its own electric car which would be launched by around 2025. However, so far, the company hasn’t been able to partner with any company for the project even as there were reports of it being in talks with Hyundai and Renault.
Tesla stock trading higher
Tesla stock was trading marginally higher in US premarket price action today. Tesla and other electric vehicle stocks have sagged this year even as legacy automakers’ stocks have jumped.
You can trade in Tesla stock through any of the best online stockbrokers. Alternatively, if you wish to trade derivatives, we also have reviewed a list of derivative brokers you can consider.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
