Tesla sent traders scrambling on Monday after a pair of cryptic social media clips triggered wide speculation about a new product reveal tomorrow, pushing its stock up by 5% before the closing bell in New York.
The company first uploaded a video of a black disc spinning with the Tesla logo, before flashing the date “10/7.” Minutes later, another post showed a vehicle hidden in pitch darkness, with only its headlights faintly visible.
The rally came right after Tesla’s stock had dropped late last week, following what the company described as a record quarter of sales that will be hard to match now that U.S. federal electric-vehicle subsidies have expired, according to Bloomberg.
The last time Tesla launched a completely new product was nearly two years ago with the Cybertruck, a model that has divided buyers and drawn criticism.
Executives have pointed to plans for a cheaper version of the Model Y as a way to support demand after the loss of subsidies.
Elon Musk has also said a second-generation Roadster is close to production, after the prototype for that model was first shown back in 2017. Elon told investors that the car would begin shipping this year.
His remarks, paired with the recent cryptic clips, have sparked debate on whether Tesla is preparing to finally deliver the Roadster or roll out a low-cost mass-market vehicle.
Musk builds suspense around Roadster and affordable car
Elon has hyped the Roadster for years. He first introduced the prototype at an event in November 2017, and then returned to it in June 2018 on Twitter. More recently, in September 2024, he said on X that “the new Roadster is something special beyond a car.”
Despite repeated mentions, the car has yet to hit the market, raising doubts among buyers given Elon’s history of announcing ambitious timelines that often drag out far longer than planned.
But Tesla has also been talking up the release of a lower-cost vehicle. Executives have explained that the model will essentially be a stripped-down version of the Model Y.
This is seen as essential for keeping growth alive. In the third quarter, Tesla reported an increase in deliveries, but executives admitted that this was mainly due to a pull-forward in demand triggered by the end of the tax credit program.
The last quarter actually showed a decline in deliveries, proving right there the risks of relying heavily on subsidies. For investors, a mass-market car priced in the $25,000 to $30,000 range would help Tesla compete with rivals offering cheaper EVs.
Competition in Europe and China weighs on Tesla sales
Tesla’s challenge goes beyond the U.S. market. In Europe, the company has been losing ground. The Kraftfahrt-Bundesamt (KBA), Germany’s road traffic agency, reported that Tesla’s sales volume fell 9.4% in September, with 3,404 cars registered in the country.
For the January to September period, Tesla’s sales dropped 50.3% year-on-year to 14,845 units. Meanwhile, overall battery-electric vehicle registrations in Germany rose 31.9% year-on-year in September to 45,495 units.
At the same time, Chinese rival BYD is expanding fast in Europe. KBA said BYD’s sales in Germany rose more than twentyfold in September to 3,255 units, bringing its total to 11,810 cars sold this year.
While some European registrations picked up in September thanks to an updated Model Y, Tesla still faces political backlash tied to Elon Musk, intense competition from local EV makers, and an aging product lineup.
These challenges have forced Tesla to focus heavily on the October 7 reveal, where the company is expected to show its hand on both the Roadster project and a mass-market model.
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Source: https://www.cryptopolitan.com/tesla-stock-surges-by-5/