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Tesla (TSLA) CEO Elon Musk says the Model Y Refresh is on track, but the new model comes as the electric vehicle (EV) giant faces controversy tied to Musk's political work.
Edmunds head of insights, Jessica Caldwell, joins Julie Hyman and Freedom Capital Markets chief global strategist, Jay Woods, on Yahoo Finance's Tesla earnings special to discuss what the next growth driver for Tesla could be.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
you talk about sales, sales have been declining that he's obviously been blacklisted by certain communities here in the United States. Um, where do you see that growth coming from now? Because we we haven't been able to see it in auto sales, he didn't give us anything really to hang our hat on. Um, going for the next three to six months, did you do you feel as if we're going to have to wait for another quarter before we can get anything truly optimistic out of Tesla?
Um, I mean, they've talked a lot about the Model Y refresh. It's just it feels like it's hitting at an unfortunate time for, you know, for Tesla at this point in time. There's a lot of people that are, you know, may not consider it as much as in the past. Then, you know, it seems like from all accounts, a fairly decent refresh. So, it doesn't necessarily seem like people are clamoring to, you know, to this product or or or, you know, Tesla in the next in the short term. It just feels like they sort of need that next big thing to really kind of re-stir the love affair with Tesla because it, you know, it's like when you think about their last product that hit that was more for the mass market, the Cybertruck, that was, you know, pretty polarizing. People loved it, but a lot of people did not like it. Um, so until they kind of get to that next product that would be more appreciated by the mass market, they're still kind of stuck with what they have. And you know, we've seen already from the first quarter, it's it doesn't seem to be hitting as much as it once did.
Well, and Jessica, the Cybertruck, it may be a mass product, but it's an expensive product, right? So, the other thing of course that we're waiting for is the lower priced Tesla. And there's been some reporting around whether, I mean, Musk said today they're on track, but there's been some reporting around whether indeed they are on track. There's been some reporting around whether it might just be a stripped down Model Y. Is that something that would be appealing in the market or would it need to be sort of different enough from the existing Tesla models, even at that lower price point?
I think it needs to be different than the existing Tesla models. If you look at a stripped-down Model Y, it doesn't feel like that would necessarily set the world on fire. I mean, if you want a cheap Tesla and that's what you're into, go get a slightly used one. The residual value hasn't been great on that vehicle. So, if people are truly looking for that deal, it may be used by a few years, but you're going to get a great deal on it. So, it does seem like there is something that has to be new, at least visually. I mean, people are just, they need to connect with their emotions, with their eyes. And even though, you know, we may be attuned to all the small differences of a vehicle refresh, the average consumer isn't. They need to have a visible difference. And it feels like that's what Tesla really needs to kind of move the needle for, you know, for themselves. And that's, I don't think that's new news. It feels like that's been going on for a while when you think about how long in tooth the product, the Model 3 and the Model Y are.