Tesla Inc.
TSLA
has announced an overnight price increase in the range of 5-10% throughout its entire lineup of vehicles in China and the United States for the second time in less than a week.
Last week, the auto magnate raised prices, charging $1,000 extra for all vehicles equipped with long-range battery packs. Prices of its U.S. Model Y SUVs and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles were increased. The latest price increase is more glaring.
Tesla’s cheapest electric car, the Model 3-Rear Wheel Drive, is now priced at $46,990, up from $44,990. Its price increased by a whopping $2,000 within just a week. The price of Model 3 Performance was increased by $3,000. As for the Model Y, Tesla increased the base price by $2,000, and the price of the Performance version of the electric SUV was hiked by $3,000. Tesla’s flagship products, Model S and Model X, also saw a steep price rise. Model S and its performance version now cost an extra $5,000 each. Model X was spared in the previous price increases, but this time the electric SUV witnessed a price rise of $10,000.
Speculation of a price hike was rife after Tesla announced that it was facing inflationary pressure in raw materials and logistics. The company had been bearing the brunt of gradual price inflation throughout 2021, but the situation has been aggravated by the supply bottlenecks brought by the Russia-Ukraine war.
Prices of metals used in cars and electric vehicle batteries, including aluminum, palladium, nickel and lithium, have soared tremendously. The burgeoning prices are a concern as the long-drawn semiconductor crisis is already throttling large auto giants as they stare at a volatile market ahead.
Shares of TSLA have gained 17.1% over the past year, against its
industry
’s 15.8% decline.
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Zacks Rank & Other Key Picks
Currently, TSLA has a Zacks Rank #1 (Strong Buy).
Other top-ranked players in the auto space include
Harley-Davidson
HOG
and
LCI Industries
LCII
and
CarGurus
CARG
, each sporting a Zacks Rank #1, currently. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 7.2% over the past year.
LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 16.3% over the past year.
CarGurus has an expected earnings growth rate of 8.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 25% upward in the past 60 days.
CarGurus’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. CARG pulled off a trailing four-quarter earnings surprise of 45.34%, on average. The stock has risen 61.3% over the past year.
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