Media reports on Monday claimed that Tesla (TSLA), will be exporting Model Y cars from Shanghai to Canada in the coming months. TSLA's stock continued to decline, extending the April sell-off.
Reuters reported on Monday that the global EV giant will sell a cheaper China made version of Model Y to Canadians. Tesla's Model Y, the best-selling car in the world, is now available in Canada in a rear-wheel-drive trim that is $7,000 less expensive than the long-range model currently on the market.
According to Reuters, Tesla Shanghai has started producing the new Canada Model Y. Deliveries are expected between May and August. Reuters reports that Tesla wants to build around 9,000 Model Y cars made in China for Canada during the current quarter.
The government will offer incentives worth around $3,690 for the rear-wheel-drive Model Y and its long-range version. These incentives are available on purchase of the vehicle or a lease over four years.
The Canadian Model Y is priced at $44,275 and has a range of 245 miles, according to the EPA. The entry-level Model Y in the U.S., with all-wheel-drive, is rated by EPA at 279 miles. It costs $46,990. Model 3 in the U.S. is also eligible for a $7.500 tax credit.
Tesla has only delivered Model Ys made in the United States to Canada up until now. Tesla has slashed the prices of Model Y trims in the U.S. three times in 2023 to try and increase demand. Tesla Austin continues to ramp up. According to SEC filings, the EV giant plans to spend $7 billion-$9billion in capital expenditures in each of next two years. It had expected a 2023 capex range of $6 billion to $8 billion in January.
TSLA shares fell around 1% on Monday in premarket trading.
Tesla stock fell 10.8% to its lowest levels since January. The majority of the drop occurred on Thursday after Tesla's gross margins dropped more than expected. Elon Musk also hinted that more drops could be forthcoming.
The TSLA share price has dropped by more than 20% since April.
Tesla stock does not have a base. According to MarketSmith's analysis, if Tesla recovers it will likely form a base at a double bottom with a buy point of 207.89.
Tesla is ranked fifth in IBD’s Auto Manufacturers group. TSLA is rated 63 out of 99. Stock has a Relative Strength rating of 26. The EPS rating is 92 of 99.
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