Tesla Inc. (NASDAQ: TSLA) inches up in pre session on Wednesday as the company’s website revealed late Tuesday that it has started collecting orders for its Model 3 long-range variant in the United States, following a short suspension last year due to delivery backlogs.
The long-range Model 3 is presently priced at $47,240, which is around 18.5% cheaper than the $57,990 it was priced at last August when Tesla ceased taking orders in the United States and Canada.
“The waitlist is excessively long.” “Will enable again as we ramp production,” Elon Musk tweeted at the time in response to a user’s question about the order cancellation.
According to the website, Tesla hopes to start deliveries of the long-range Model 3 electric vehicle in June. However, the website indicated that it is still not accepting orders in Canada.
The entry-level Model 3 long-range variant has a range of more than 325 miles (523 kilometers) on a single charge.
Tesla has been changing the cost of its automobiles on a regular basis since the beginning of this year in order to increase sales. After previously lowering prices, the corporation raised them marginally on Tuesday in Canada, China, Japan, and the United States.
Musk has stated that Tesla is ready to sacrifice profit for sales volume in the face of a sluggish economy, but that the company is also trying to raise pricing when possible in order to align deliveries with output.
To Double Tesla’s Famous Volatility
Following the failure of previous attempts, a long-shot bid to launch double-leveraged, single-stock exchange-traded funds tracking the notoriously volatile Tesla Inc. has been filed with US regulators.
According to a Tuesday filing, the T-Rex 2X Long Tesla Daily Target ETF would trade under the ticker TSLT and employ derivatives to follow twice Elon Musk’s electric-vehicle maker’s daily returns. The T-Rex 2X Inverse Tesla Daily Target ETF, which would trade under the ticker TSLZ, would track the reverse performance of Tesla stock by the same magnitude.
“We think we have figured out a way to get to 2x, but if asked to dial back, it would just depend on how much,” Matthew Tuttle of Tuttle Capital Management, who applied to form the ETFs with REX Shares, said in an email.
Despite this, nearly 30 US single-stock funds have launched since July of last year. Because of the stock’s unusual volatility, the majority of the $900 million in assets is held in ETFs linked to Tesla. On any given day, Tesla is the most frequently traded stock in the United States, with a 90-day volatility of over 71%.
“I would be surprised if the Tesla 2x ETF gets approved,” said Bloomberg Intelligence ETF expert James Seyffart. “I can’t imagine them approving this after denying this exact level of leverage in the past, even if TSLA’s volatility has decreased somewhat.”
