Is it "divine operation" or "small play"? Wall Street is discussing Tesla, Inc.'s (TSLA.US) low-cost versions of Model 3 and Model Y.

After launching the "simplified version" of the Model 3 and Model Y, Tesla, Inc. (TSLA.US) has once again become the focus of the market. However, the prices of these two models are still higher than the $30,000 threshold that the company had previously promised to the mass market. Obviously, the expiration of electric vehicle tax incentives has put greater pressure on automakers, prompting them to prioritize improving the value proposition of their products. Analysts at Deepwater Asset Management, including Gene Munster, have expressed "appreciation" for Tesla, Inc.'s price reductions - the price of the Model Y has been lowered by 11% to $40,000, while the Model 3 price has decreased from $39,000 to $37,000. Munster believes that this pricing adjustment means that Tesla, Inc. is more likely to achieve the 16% delivery growth target by 2026 that Wall Street is expecting. He pointed out, "Most people originally expected Tesla, Inc. to release a simplified version of the Model Y, but the actual model released is essentially the same as the original version, with restrictions only on body colors and wheel choices." Munster further pointed out that the new pricing of the Model Y and Model 3 may put pressure on competing models in the $30,000 to $35,000 price range, such as the Nissan Leaf, Hyundai Ioniq 5, and Ford Mustang Mach-E. He emphasized, "For Hyundai, Ford, and Nissan, the challenge is not from the price, but from the software. As full self-driving (FSD) technology and onboard computing power become as important as range in the electric vehicle experience, Tesla, Inc.'s advantage in software continues to grow." Dan Ives, an analyst at Wedbush Securities, believes that launching lower-priced models is the first step for Tesla, Inc. to return to its goal of "approximately 500,000 quarterly deliveries" - after the expiration of electric vehicle tax incentives, this move is crucial for stimulating demand for its models. However, Ives also expressed disappointment in the extent of this price reduction, as the new prices are only $5,000 lower than the previous Model 3 and Model Y. Nevertheless, Wedbush still rates Tesla, Inc. as "outperforming the market," citing the significant advantage the company has in its valuation logic in the artificial intelligence (AI) field. Shay Boloor, Chief Market Strategist at Futurum Equities, believes that Tesla, Inc.'s announcement this time is essentially just a "price leverage" operation and does not qualify as an influential product catalyst. He warned, "I do not believe that this move can unleash new market demand on a large scale." Shawn Campbell, a consultant at Camelthorn Investments, believes that the extent of this price reduction may still not be enough. He said in an interview, "In the long run, this news cannot address the challenge that low-cost Chinese competitors pose to Tesla, Inc. in the global market. In my opinion, Tesla, Inc. needs to release an electric vehicle priced below $30,000." Daniel Jones, head of the Seeking Alpha investment team, has rated Tesla, Inc. as a "strong sell" from a more macro perspective, as he believes that the company's current valuation is linked to "irrational exuberance" and lacks reasonable support. In terms of stock price, Tesla, Inc. rose by 1.29% on Wednesday. The company currently has a market value of $1.46 trillion, exceeding the combined market values of Toyota, Honda, General Motors Company, Ford, Nissan, and Stellantis.