Tesla shares gain after Model Y price hike in US, Europe

Model Y price hike boost

New York, March 18 (Reuters) – Tesla (TSLA.O) shares rose 7% on Monday after the automaker announced price increases for its Model Y electric vehicles in many European nations and the United States.

Tesla announced on Saturday that the cost of its Model Y vehicles will rise by about 2,000 euros ($2,177) in various European nations beginning March 22. On Friday, it announced a $1,000 price increase for all Model Y cars in the United States, which takes effect April 1.

Following the announcements, Tesla shares climbed as high as $174.72, up nearly 7%, marking the most significant percentage daily gain in more than a month after two weeks of decline. Following a dip to a near 10-month low last week, the stock is currently on course for its second consecutive day of gains. It was last up 6.3%, to $173.92.

According to LSEG data, the consensus estimate of the 49 analysts covering Tesla’s shares is $193, down from $211.50 a month ago. The average recommendation is “hold.”

Goldman Sachs analysts reduced Tesla’s 12-month price forecast to $190 from $220, citing delays in Model 3 production and manufacturing stoppage at its Berlin gigafactory due to an arson assault.

Reduced European subsidies for electric vehicles, more competition in China, the company’s second-largest market after the United States, and sluggish demand will also affect Tesla’s sales, according to an analyst lead by Mark Delaney, who released an investment note on Sunday.

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