Tesla shares close lower on Tuesday, auto maker removes standard-range Model S, X variants from line-up to simplify offerings

Tesla Inc (TSLA) said on Tuesday that it had removed the standard-range versions of its Model S and Model X vehicles from its line-up and had also adjusted pricing.

Tesla shares closed lower for the sixth time in the past thirteen trading sessions on NASDAQ on Tuesday. The stock went down 0.44% ($1.12) to $252.38, after touching an intraday low at $248.00 and an intraday high at $253.52.

Shares of Tesla Inc have retreated 24.16% so far in 2019 compared with a 25.23% gain for the benchmark index, Nasdaq 100 (NDX).

In 2018, Tesla’s stock went up 6.89%, thus, it outperformed the Nasdaq 100, which registered a 1.04% loss.

In order to simplify its product offerings, Tesla limited the versions of its Model S sedan and its Model X sport-utility vehicle only to the cheaper “Long Range” and the costlier “Performance”.

However, the starting prices of both vehicles went up – to $79 990 for the Model S and to $84 990 for the Model X.

In China, yesterdays changes boosted the starting price of Teslas Model S to CNY 776 900 ($112 969)* and that of the Model X to CNY 790 900 ($115 004).

“To make purchasing our vehicles even simpler, we are standardizing our global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3,” Tesla Inc said in a statement, cited by Reuters. “We are also adjusting our pricing in order to continue to improve affordability for customers,” the company said.

The US electric car maker said earlier in July that global deliveries of Model S, Model X and Model 3 increased 51% during the second quarter of 2019 compared to the prior three-month period to hit the record 95 200 vehicles. Teslas Model 3 comprised nearly 80% of total deliveries.

* 1 US Dollar equals 6.8771 Chinese Yuan

Analyst stock price forecast and recommendation

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $237.00, with a high estimate of $530.00 and a low estimate of $140.00. The median estimate represents a 6.09% downside compared to the closing price of $252.38 on July 16th.

The same media also reported that at least 12 out of 34 surveyed investment analysts had rated Tesla Inc’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 10 analysts had recommended selling the stock.