Tesla Model Y: Could Musk Deliver It in Q1 2020?



Tesla (TSLA) plans to launch its much-awaited Model Y next year. In the company’s third-quarter earnings call, CEO Elon Musk said the company should deliver the Model Y next summer. However, CNBC reports Deutsche Bank estimates the model could be delivered in Q1 2020, thanks to parts being available.

In a note, Deutsche Bank analyst Emmanuel Rosner wrote, “The Taiwanese suppliers are now indicating that the Tesla is accelerating orders to enter mass production a full six months ahead of the original schedule. This would mean that the Model Y could be available to the public in the first quarter of next year.”

Tesla’s Model Y

If the company delivers the Model Y ahead of its planned summer 2020 deadline, it could be bad news for Tesla critics. The early delivery would also mean a full year of Model Y sales, which could raise the company’s earnings outlook and prospects. As of now, analysts expect Tesla to switch to profit in 2020, with its EPS rising year-over-year from -$0.63 to $5.30.

The company is hustling to produce the Model Y, a crossover SUV, at its Fremont site. It is using what it’s learned from China’s Gigafactory 3 to accelerate the work. The company also plans to produce the Model Y at its Gigafactory 4 in Germany.

Tesla expects the Model Y’s margins to be wider than those of its best-selling Model 3, and for the Model Y’s average selling price to be slightly higher. The company is also looking at a leaner cost structure to boost the Model Y’s margins.

Tesla’s Model Y competitor, Ford’s Mustang Mach-E

While Tesla has continued to take pre-orders for the Model Y, its rival, Ford Motor’s Mustang Mach-E, seems to have sold out its First Edition variant. Tesla has revealed that it has received over 200,000 Cybertruck pre-orders. However, the company has not revealed its Model Y numbers.

Ford’s Mach-E and Tesla’s Model Y will both be available in rear-wheel and all-wheel-drive variants. For a comparison of their range, acceleration, and capacity, read Can Ford’s Mustang Mach-E Be the Tesla Model Y Killer?

Tesla stock marches onward and upward

Tesla stock’s rise, which started after the company’s earnings release, has continued. The stock rose on the company’s surprise third-quarter profit. News of Tesla’s Gigafactory 4 and Model 3 production at its Gigafactory 3 further supported the stock.

Yesterday, TSLA stock rose marginally, by 0.4%. The day brought mixed news for the company. Piper Jaffray analyst Alexander Potter believes Tesla’s Cybertruck could usher in growth for the company and expects Cybertruck orders to reach 200,000 units per year by 2023. He raised TSLA’s target price from $372 to $423. However, Musk’s trial over an insulting tweet began in US court.

The Cybertruck’s unveiling didn’t go over well on Wall Street. To learn more, read Tesla Stock Slumps 5% after Cybertruck Reveal.

More From Market Realist