Tesla Stock (TSLA) Fails to Pile on the Pounds Unlike its New Model S Upgrades

The Tesla (TSLA) share price reversed today as it hiked prices across its premium Model S and Model X range.

Longer Range

The troubled EV maker said it had made upgrades to both models, which account for less than 5% of its annual sales. Those new features include more effective noise cancellation, smoother suspension, and increased range.

The updates feature newly designed front bumpers incorporating new and improved cameras for Tesla Autopilot and “Actually Smart Summon,” which helps with navigation. They also boast new wheels, headlights, and customizable interior lighting.

In addition, the Model S Long Range now has 410 miles of range, which Tesla says is its longest-range EV yet.

However, one of the main changes customers will notice with the cars, which are now on sale in the U.S., is the $4,500 price hike for all configurations of the two models.

Tesla Goes Heavy

The all-wheel drive version of the Model X costs $89,990, while its Plaid variant is priced at $104,990. The Model S all-wheel drive now costs $84,990, and its Plaid variant is $99,990.

The cars are also heavier, with the Model S Plaid adding an extra 26 pounds, while the new Model X Plaid is 186 pounds heavier.

The updated Model S Plaid is also slower. It has a top speed of 149 mph compared to the 200 mph of the previous version.

Given that these vehicles are targeted at wealthier customers, it could be argued that the price hikes might not deter demand. Although, even the wealthiest people are not immune to economic uncertainty.

Tesla is also still reeling from the fallout from chief executive Elon Musk’s political relationship with President Trump.

Tesla, whose stock is down 21% to date this year, has also been hit by concerns over increasing competition as well as the need to upgrade and improve its range.

Is TSLA a Good Stock to Buy Now?

On TipRanks, TSLA has a Hold consensus forecast based on 14 Buy, 12 Hold and 9 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $285.97 implying an 10.39% downside.

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