Tesla (D.S.L.A) introduced new, limited-range versions of its Model S and Model X vehicles late Monday, cutting the U.S. price of its base luxury electric vehicles by $10,000. Tesla shares fell slightly on Tuesday, extending losses after hitting a sell signal last week. American luxury EV startups Rivian (RIVN) and Clear (LCID) further retreated.
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Cathie Wood and her firm Ark Invest have sold nearly 120,000 shares of TSLA over the past three sessions.
Tesla now offers the new standard Model S for $78,490. According to the company’s website, the new base Model S offers 320 miles of range. Meanwhile, the new standard Model X is now offered with a starting price of $88,490, with a range of 269 miles per charge.
Tesla shares fell 2.4% to 234.00 during market trading on Tuesday. On Monday, the stock fell 1.2% to 239.76.
Tesla has slashed vehicle prices globally several times through 2023 and offered discounts starting the EV price war.
The new Model S and X models are $10,000 cheaper than the list price of the previous base variants of those luxury EVs. But buyers can currently find all-wheel-drive Model S vehicles with a 405-mile range for around $81,000. Inventory Model X all-wheel-drive vehicles are priced around $93,000, according to Tesla’s website.
The batteries in the new standard Model S and Model X vehicles are similar to the long-range options. However, new cheaper vehicles have software-locked battery packs, Electrek said on Tuesday. According to Electrek, the Tesla battery is locked at about 21% of capacity.
On Sunday, Tesla cut the price of the Model Y in China by $1,930 on the top-end variant. It also offered a new insurance subsidy for Model 3 buyers in China worth $1,100.
Tesla’s latest price cuts are rumored to have a refreshed Tesla Model 3, codenamed Highland, ready for an imminent launch in China. Investors are awaiting updates on Tesla’s new, yet-to-be-built, cheap next-generation vehicle to be built at a factory in Mexico.
Tesla stock
On July 19, TSLA pulls back from second-quarter financials as investors’ concerns over falling gross margins outweigh the global EV giant’s above-forecast revenue and earnings.
Tesla shares fell 4.4% last week to 242.65. That move eroded support at the stock’s 50-day, 10-week moving average, which closed Friday below a technical level of 6.7% support. According to IBD analysis, ending the week more than 2% below the 10-week is a significant sell signal.
Rivian, maker of the R1T pickup and R1S SUV, fell 3%. LCID fell 5% on Tuesday. Lucid recently dropped the price of its Model S competitor, the Lucid Air, by $12,400. The Model S competitor now starts at $82,400.
Kathy Wood is selling TSLA shares
Cathy Wood’s ARK Investment Management sold a total of 117,146 shares in three consecutive sessions. On Monday, Wood unloaded $2.15 million in TSLA, according to the company’s daily trading disclosure. On Friday, Cathy Wood sold $7.7 million in Tesla stock. Cathy Wood opened her latest Tesla dump with more than 76,000 shares worth about $18.75 million on Thursday.
Separately, David Depper’s Appaloosa Management disclosed in an SEC filing that it sold its Tesla stake in Q2. Appaloosa Tesla launched the position in Q1.
Tesla stock ranks third on IBD Automobile Manufacturers Industry Group. It has a composite rating of 97 out of 99. Tesla has a relative strength rating of 91 and its EPS rating is 94 out of 99.
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