Tesla shares are higher in pre-market activity following a series of tweets from CEO Elon Musk over the weekend, detailing a new Model 3 version with more features and a higher price tag to match. The move higher is also supported by an upbeat analyst view of the electric car manufacturer.
Tesla shares closed lower in the US Friday ending at $276.82, amid a losing week for the stock. However, shares are currently trading in the green in pre-market activity.
Tesla Model 3 upgrade
As the electric car manufacturer struggles to increase output levels of its mass-market Model 3 vehicle, CEO Musk tweeted Saturday that a new, upgraded version of the car would soon be available for purchase.
“Working on Model 3 dual motor all-wheel drive & performance versions. Driving feel is amazing,” Musk tweeted. He followed with: “Tesla dual motor, all-wheel drive performance Model 3:
3.5 sec 0-60mph
155 mph Top Speed
310 mile Range”.
Musk then tweeted: “Cost of all options, wheels, paint, etc is included (apart from Autopilot). Cost is $78k. About same as BMW M3, but 15% quicker & with better handling. Will beat anything in its class on the track.”
Analyst lifts Tesla price target
Also providing support for the Tesla share price Monday, is a research note from Berenberg analyst Alexander Haissl.
In it, Haissl raised his price target for the Tesla stock to $500 from $470 and reiterated his ‘Buy’ rating. He added that the Model 3 was well placed to achieve a 25% gross profit margin, as detailed by the car maker.
“Model 3 gross margin to positively surprise,” Haissl said. “Substantial gains from lower labour content, as well as capital and material use efficiencies, should allow Tesla to comfortably achieve a margin above 25% throughout the product cycle,” he added.
In addition, Haissl estimates the labour cost per car is $1,000 for the model 3, versus some $4,000 for the model S.