tesla (TSLA) appears to be working on a new and improved version of its Chinese factory’s most popular product, the Model Y, and plans to put it into mass production by mid-2024. TSLA stock rose modestly early Wednesday.
Bloomberg reported late Tuesday that the global EV giant is preparing to unveil its latest Model Y in China. The Model Y is the best-selling vehicle in Tesla’s lineup and accounts for the majority of the company’s vehicle deliveries in China and globally.
According to Bloomberg, Tesla is currently preparing an improved Model Y at its Chinese factory, with mass production expected to begin as early as mid-2024. As part of the revamp, the second phase of the Shanghai factory will be closed for a week around Lunar New Year for renovations.
The 2024 version of the Model Y will reportedly have more than just the exterior and interior improvements that Tesla addressed in a minor update to the vehicle in October.
Tesla China issued a statement to local media in China on Wednesday, refuting the Bloomberg report.
The global EV giant’s reported decision to refresh the Model Y comes after the launch of the new Model 3, in an attempt to refresh the two products in China’s highly competitive EV market.
Rumors of a “Project Juniper” Model Y update have been flying around for months.
Supported by Warren Buffett BYD (BYDDF) is Tesla’s biggest competitor in China, having just decided to open a factory in Europe.
Tesla announced the new Model 3 in China on September 1st, and official sales began on October 19th. The company began deliveries of the Highland Model 3 in China on October 26, and has also begun deliveries in Europe. The EV giant is expected to begin producing the latest Model 3 at its Fremont factory in early 2024.
Tesla China recently announced that the Model Y will be discontinued in 2023, an apparent reference to the vehicle’s standard range trim.
Tesla stock price performance
During market trading on Wednesday, TSLA rose more than 1.6% to 260.30. On Tuesday, TSLA rose 1.6% to 256.61. TSLA is up about 7% in December, with support at the 10-day moving average.
Tesla shares fell after the EV giant reported lower-than-expected third-quarter profit and revenue on Oct. 18. However, according to MarketSmith analysis, Tesla stock is building on the right side of a double dip, with a buy point at 278.98.
Strictly speaking, Tesla stock has a very thin handle on the weekly chart, giving it a buy point of 259.84. But ideally the handle would have some depth, perhaps allowing it to break below the December 20th low and at least test the 21-day moving average.
Tesla stock is up about 100% so far in 2023, easily outperforming the broader S&P 500 index.
Tesla stock ranks No. 4 in the 35-member IBD Auto Manufacturing industry group. He has an overall score of 80 out of 99 for the S&P 500 components. Tesla stock also has a Relative Strength Rating of 90 and an EPS Rating of 88.
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