Wedbush says Tesla lower cost model ‘first step’ to 500K delivery run-rate

Wedbush notes that Outperform-rated Tesla (TSLA) announced the launch of multiple new vehicles for its Model 3 and Model Y models to provide more affordable vehicle options as the company looks to address a major issue with EV affordability with its new cheapest Model 3 carrying an ASP of $37k and the new Model Y Standard carries a $40k price tag. The firm believes the launch of a lower cost model represents the first step to getting back to a 500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September. With that said, Wedbush is relatively disappointed with this launch as the price point is only $5k lower than prior Model 3’s and Y’s.