Tesla Might Unveil Its Model Y Next Week

According to Oppenheimer Holdings Inc. (OPY) analyst Colin Rusch, Tesla Motors Inc (TSLA) will need to raise about $12.5 billion by the end of 2018. While most of that will be put towards its pending merger with SolarCity Corp (SCTY), at least $2 billion of that will go towards its auto unit.

Much of that $2 billion will of course help ramp up Model 3 sales, but Elon Musk recently revealed that Tesla will have a surprise announcement on October 17.
He described it as a new product announcement "unexpected by most."

Could this finally be the reveal of Tesla's Model Y?

Here are the possibilities

Musk revealed his Master Plan Part 2 in July. If you haven't read it, it's definitely worth a few minutes of your time. In it, Musk outlines his view of the future, including likely Tesla launches.

Also Read: General Motors Is Better Than Ford: Here's Why

Specifically, Musk mentioned current development on a pickup truck, a heavy-duty cargo truck for freight shipping, and a mass transit vehicle.
Tesla Might Unveil Its Model Y Next Week
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The pickup truck is possibly what many investors have dubbed "Model Y". The last one sounds like it will be a bus-type vehicle, but Musk has commented that autonomous vehicles will likely reshape what's considered mass-transit.

There have also been rumors surrounding an electric motorcycle known as the Model M. That seems unlikely for now. The Model Y should be the closest to development and thus most likely for a reveal.

In his new Master Plan, Musk also outlined his version of an Uber-like service, allowing Tesla owners to rent out their vehicle to earn money. With Tesla's currently equipped with autonomous driving capabilities, they could instantly become the cheapest form of ride-sharing available.

Uber is currently valued at $66 billion. If Tesla reveals more details surrounding its ride-sharing business, expect the stock to pop.

While it's well behind Uber and Lyft right now, the future winner will be whoever has a large automated installed fleet, not just existing drivers. If Tesla can pull this off, it will instantly have hundreds of thousands of self-driving cars on the road (when including previous sales and Model 3 reservations).

It's no wonder that Uber's CEO once said that if Tesla made a fully autonomous car, he would buy every single one of them. Autonomous cars are that important to the future of ride sharing.

So, it's likely that the launch will include details on a Model Y or Tesla's ride-sharing foray. Investors will have to wait for the full reveal, but if it's anything close to a full product launch, Tesla shares are certain to run.

Published on Oct 14, 2016
By Ryan Vanzo
Ryan Vanzo is the Digital Business and Finance Editor at WebFinance Inc, which runs InvestorGuide.com, InvestorWords.com, and BusinessDictionary.com. You can reach him at ryan@investorguide.com

Copyrighted 2020. Content published with author's permission.

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