The end of the year is closer than you might think, with just over three weeks to go. And that means companies are trying to clear the shelves and get next year’s inventory ready to go. Electric vehicle giant Tesla (TSLA) is no exception, and is eagerly trying to sell Model Y cars, using every trick at its disposal to get you to come in and sign some papers. The move was good news for investors, who sent shares up nearly 2.5% in Tuesday afternoon’s trading.
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Granted, the loss of federal tax credits has hit the entire electric vehicle industry like a bus, and a bus that runs on diesel, at that. But Tesla is still in there, demonstrating it can make sales even in a hostile environment. And so, Tesla is using every trick they can summon to make those sales happen. Try 0% APR financing for up to six years. If you would rather have a Model 3 instead, that is available for financing at 2.99% APR, about half of what its normal rate would be.
But it is not just low interest rates. Tesla is also offering free upgrades, which means a Tesla in your dream color or with the all-white interior can be yours for the exact same price as a more “stock” car. That represents a discount that starts at $1,000 off, and could be as high as $2,500 off.
European Troubles
But Tesla’s sales ambitions are running into problems all over the planet. We have already seen Tesla’s troubles in China, and the word out of the United Kingdom is not much better, along with the rest of Europe.
One of Tesla’s biggest rivals, legacy carmaker Stellantis (STLA), recently set up a deal with Bolt, a ride-hailing service in Estonia, to bring driverless cars to Europe. That puts over 200 million customers into Stellantis’ pocket, and likely pulls some of the market away from Tesla and its self-driving cars. Ford (F) is trying something similar, believing it is in a “…fight for our lives in our industry.”
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 9.62% rally in its share price over the past year, the average TSLA price target of $383.54 per share implies 14.99% downside risk.
