Tesla Analyst Says New Model Y, Model 3 Variants Fail To Excite: 'Less Unique'

Core Viewpoint - Tesla's new Model Y and Model 3 variants may not meet initial demand expectations due to pricing and feature limitations, according to Goldman Sachs analyst Mark Delaney, who maintains a Neutral rating with a $425 price target [1][2]. Summary by Sections New Model Variants - The new Standard variants of Model 3 and Model Y have had features such as panoramic roofs, ambient lighting, and second-row screen displays removed to reduce costs, while also offering a lower starting price [2]. - The starting prices for the new Standard variants are $36,990 for Model 3 and $39,990 for Model Y [5]. Market Positioning - Delaney noted that the differentiation in price and features for the Standard trims is less than previously anticipated, indicating that the new models are not as unique as investors had expected [3][5]. - Tesla had initially planned to introduce a model that would cost 50% less than the Model 3 and Model Y, but instead, consumers are receiving variants of existing models [4]. Competitive Landscape - The analyst highlighted that Tesla's Model Y L, launched in China, could be more significant for growth than the new Standard variants, as it targets the three-row SUV market in the U.S. [5]. - There are key risks for Tesla, including increased competition in the electric vehicle market, potential price cuts, and operational risks related to vertical integration [6]. Stock Performance - Tesla's stock was trading at $433.21, within a 52-week range of $212.11 to $488.54, and has increased by 14.2% year-to-date in 2025 [7].