Tesla share price down 5% after unveiling Model Y SUV

Tesla share price is down 5% after the car company revealed its new Model Y SUV. The car is expected to be released to the public in 2021, but can ordered now by customers.

What features are in the Tesla Model Y?

The Tesla Model Y will cost between $39,000-$60,000 and will be 10% bigger than the Model 3 sedan. The SUV will seat seven people and four versions of the vehicle will be available. There is also a self-driving option that customers can purchase for $5,000. Tesla’s founder, Elon Musk, said that he expects the car to be fully autonomous when it is released in 2021.

‘My guess as to when we would think it is safe for somebody to essentially fall asleep and wake up at their destination? Probably towards the end of next year. That is when I think it would be safe enough for that,’ said Musk.

What did Elon Musk during the Model Y unveiling?

Musk noted that the last year at Tesla was a challenging one to meet the deadlines of producing the company’s electric cars. The Model Y is being unveiled about three years after it was promised to consumers.

‘2018 felt like aging five years in one. Honestly it was really intense,’ said Musk.

Musk had many controversies facing him last year. The US Securities Exchange Commission (SEC) wants to hold him in contempt for his controversial tweets. The company has also had volatility with its share price and high turnover with many executives leaving the corporation.

Why is Tesla share price down?

While the Model Y had a prominent launch, many Wall Street analysts were underwhelmed, which likely lowered Tesla share price. Jeffery Osborne, managing director at Cowan, felt that the Model Y SUV was reveal did not live up to expectations.

‘The Model Y underwhelmed us[Wall Street analysts],’ said Osborne.

Many analysts also noted that many of the Model Y used 75% of the same parts as the Model 3. Michael Harley, executive editor of the car analysis publication, Kelly Blue Book, was also unimpressed with the car.

‘It’s not groundbreaking, earth-shattering, revolutionary by any stretch of the imagination. ‘Obviously, Tesla is playing it safe, but it knows what its customers expect and what its customers like to buy. This is a very safe and conservative model, in terms of styling,’ said Harley.

Tesla’s stock is undergoing more volatility as the carmaker’s latest vehicle is revealed. Investors will be monitoring the company to see what will happen next with the electric car company.