Tesla Motors Inc share price down, announces improvements on Model S

Tesla Motors Inc introduced an upgraded version of their Model S, featuring driver-assisting tools, two motors, “autopilot” and all-wheel drive.

Last week Tesla send a mysterious tweet, preparing the public for the release of the D-technology. “About time to unveil the D and something else”, the message was retweeted more than 14 000 times and favored more than 10 000. The tweet also caused a 4% increase in Teslas share price.

On Thursday evening the new model was shown off in Los Angeles. Tesla CEO Elon Musk said that the “D” stands for dual-motor, making the model all-wheel drive with a separate engine for the front and back wheels.

The D-technology is offered as an additional package and aims at providing greater efficiency, speed and acceleration. It adds 10 miles extra range in one charge, up to 275 miles, and takes the car from 0 to 60 miles per hour in 3.2 seconds, compared to 5.4 seconds before the upgrade.

The vehicle is equipped with additional hardware including long-range radar, image-recognition camera and a 360-degree ultrasonic sonar. The new installments are implemented to work with the “autopilot” feature included within the upgrade, making it possible for the car to switch lanes, adjust speed, “see” pedestrians and road signs, park itself, turn air conditioning before a trip, and many others.

Mr. Musk commented that the cars technology was capable of higher levels of automation, but it was not yet safe to let it drive all on its own. A year earlier during an interview with the Financial Times, Elon Musk said that within 3 years his companys vehicles would reach a 90% level of autonomy.

Tesla Motors Incs update on the Model S is expected to boost the companys sales while customers await the release of the Model X crossover, due next year.

Karl Brauer, senior analyst at Kelley Blue Book, said for Reuters: “Until the Model X arrives, a vehicle that will substantially amplify Teslas appeal and volume potential, these upgrades should keep the Model S at the forefront of advanced personal transportation.”

On Thursday, Tesla Motors Inc closed at $257.1 on the NASDAQ, down 0.88% on the day, marking +52.28 1-year change. The company is valued at $32.31 billion. Shares were down 1.79% in pre-market trading by 8:03 GMT on Friday. According to the Financial Times, the 16 analysts offering 12-month price targets for Tesla Motors Inc have a median target of $287.50, with a high estimate of $400.00 and a low estimate of $75.00. The median estimate represents an 11.86% increase from the last price of $257.01.