Welcome to the Tesla Weekly News Roundup, where we bring you the latest developments and insights from the world of Tesla.
1. Tesla Launches Refreshed Model Y in China
Tesla has introduced an updated version of its popular Model Y in China, featuring design enhancements and improved performance. The new Model Y includes sleeker headlights and tail lights, heated and ventilated seats, a second row touchscreen, and an extended driving range of up to 719 kilometers per charge. Priced at 263,500 yuan ($35,900), this model is approximately 5.4% more expensive than its predecessor. Deliveries are expected to begin in March, pending regulatory approval. This move aims to strengthen Tesla’s position in the competitive Chinese electric vehicle market, where it faces challenges from local manufacturers like BYD and Xiaomi.
Sources: The Times, Business Insider, Financial Times
2. Tesla Faces Exclusion from California EV Rebate Program
California Governor Gavin Newsom has proposed a new electric vehicle (EV) consumer rebate program that may exclude Tesla due to market-share limits designed to promote competition and support new entrants. Elon Musk, Tesla’s CEO, criticized the proposal, calling it “insane” to exclude the only company manufacturing EVs in California. This development adds to ongoing tensions between Musk and state officials over various policies.
Source: The Times
3. Annual Vehicle Deliveries Decline for the First Time
In 2024, Tesla experienced a 1% decline in global vehicle deliveries, marking the first annual drop in over a decade. Despite a record forth quarter with a 2% increase in sales, the company did not meet its annual target, delivering 1.79 million vehicles worldwide. This shortfall led to a 6% drop in Tesla’s stock. The decline is attributed to increased competition, particularly from Chinese rival BYD, which saw a 12% increase in sales, and a decrease in demand for electric vehicles in the U.S.
Source: The Wall Street Journal
4. Tesla’s Stock Rating Downgraded by Bank of America
Bank of America has downgraded Tesla’s stock from “buy” to “neutral,” raising the price target to $490 from $400. The downgrade reflects concerns over execution risks and increased competition in the electric vehicle market. Despite some volatility, Tesla’s stock gained 62.5% in 2024, primarily in the fourth quarter.
Source: Investor’s Business Daily
5. Tesla’s AI and Robotics Investments Continue
Tesla plans to invest $10 billion in artificial intelligence research, focusing on projects like the Dojo supercomputer and the Optimus humanoid robot. CEO Elon Musk’s emphasis on long-term AI and robotics initiatives indicates a strategic shift towards integrating advanced technologies into Tesla’s future products and services.
Source: The Wall Street Journal
Stay tuned for next week’s roundup to keep abreast of the latest Tesla news and developments.
