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Tesla (NASDAQ:TSLA) shares were pointing to a positive opening on Monday after Elon Musk tweeted over the weekend that a dual motor, all-wheel drive performance Model 3 will be coming, and after U.S. Treasury Secretary Steve Mnuchin said on Sunday that “We’re putting the trade war on hold,” referring to trade talks with China.
Tesla’s dual-motor AWD version will cost US$78,000, and will have a 310-mile range with a top speed of 155 miles per hour. The cost of the new version of Model 3 is double the US$35,000 market price of Model 3, which Tesla aims to sell as its mass-market model.
According to Musk, the cost of the new AWD of Model 3 would be about the same as BMW M3, but it would be 15 percent quicker and have better handling. “Will beat anything in its class on the track,” Musk wrote on Twitter on Saturday.
“We start delivering the dual motor Model 3 in July,” Musk tweeted in a reply to one of his tweets about the new version.
According to Electrek, the price for the dual-motor Model 3 is slightly higher than expected, but it would likely result in a surge in orders by Model 3 reservation holders because many of them had been waiting for the new specifications and options.
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Musk’s latest Twitter news announcement comes after Goldman Sachs said in a research note last week that Tesla might need to raise more than US$10 billion by 2020 to fund its automotive operations and achieve its targets.
At the start of this week, Tesla’s stock was supported in pre-market trade on Monday by the “hold” on the U.S.-China trade war, the new Model 3 version, and a report by analysts at Berenberg who said that capital and material efficiencies and reduced labor content along the Model 3 production line could help Tesla to “comfortably” exceed a 25-percent profit margin on the US$35,000 Model 3. Berenberg has a US$500 price target on Tesla’s shares—the highest among the major Wall Street analysts who cover the stock, The Street reports.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
Musk is certainly one of the greatest salesmen of our time.