Tesla unveiled its crossover SUV electric vehicle on Thursday night however Wall Street was largely unimpressed by the auto as well as received the idea with little fanfare.
The shares dropped more than 2 percent in premarket trading Friday.
“Overall, we found the event somewhat underwhelming with no major surprises,” Deutsche Bank’s Emmaneul Rosner said in a note.
The style Y will use about 75 percent of the same parts as Tesla’s low cost style 3, CEO Elon Musk said. that will makes the style Y “likely to cannibalize the style 3,” Morgan Stanley analyst Adam Jonas said.
Cowen analyst Jeffrey Osborne also said the “style Y reveal underwhelmed us,” especially since “the night held no surprises.” Osborne said investors were looking for a refresh to the style S as well as style X lines, fresh software or even details on how Tesla’s first quarter is usually going.
“We remain concerned about the manufacturing timeline,” Bernstein’s Toni Sacconaghi said of the style Y. “Last night’s unveiling essentially reaffirmed Tesla’s target of “volume” production by the end of 2020.”
A few analysts stuck to bullish sentiment on Tesla as a whole, exemplified by Baird’s Ben Kallo, who said his firm continues “to like TSLA into the Q1 delivery Discharge, as we think the negative sentiment on style 3 demand as well as Q1 deliveries is usually overblown.”
Here’s what all the major analysts said about Tesla’s style Y unveiling: