Tesla (TSLA) teased its fans with a “10/7” or October 7 event. Based on the silhouette imagery, speculators thought that Joby Aviation (JOBY) or Archer Aviation (ACHR) would partner with the firm to offer a flying car.
Instead, the EV giant only announced an affordable version of the Model Y. This underwhelmed consumers and investors. They get fewer options at a lower price, so nothing big changed compared to what Tesla offered before the government canceled the $7,500 EV tax credit.
On Tuesday, Archer Aviation stock dropped by 8.5% and another 5% in after-hours trade. Joby dropped by 3.37% and another 8.78% after markets closed. JOBY stock is more speculative than ever. Not only does it not have any revenue, but the firm filed to sell $500 million in common stock after markets closed yesterday.
Tesla's lower-cost Model Y is now $39,990. It will have 325 miles of range and a maximum speed of 125 miles per hour. The standard version is rear-wheel drive. Consumers hoped for better affordability. It needed to offer an even lower price point to attract more consumers.
The firm faces intense competition from low-cost EVs from China. In Britain, consumers are already embracing BYD vehicles. Sales jumped eightfold, to 880% in the last month.
BYD’s sales total of 11,271 vehicles earned it a 3.6% share of the UK market.
