The TSLA stock gained momentum on Monday as Musk promises to deliver Model S Plaid by March 2022. Tesla competitor Rivian faces major challenges on battery range for its all-electric Rivian vans.
On Monday, November 22, the Tesla Inc (NASDAQ: TSLA) stock gained 1.74% after CEO Elon Musk tweeted that the Model S Plaid launch will happen in China as early as March 2022. Musk said that the luxury sedan will be available during a late-night update on Sunday, November 21.
Tesla launched its Model Plaid S earlier this year in June 2021. The car boasts a 520-mile range on a single range with a top speed notch at 200 miles per hour. As per the previous announcement, the car will retail at a price of $129,000.
China is one of the key markets for Tesla for its success. Probably, this was the reason that Tesla decided to launch its first gigafactory outside the US in China. In a recent note to investors, Wedbush analyst Daniel Ives said: “the linchpin to the overall bull thesis on Tesla remains China, which we estimate will represent 40% of deliveries for the EV maker in 2022.”
Earlier this month on November 4, the TSLA stock touched an all-time high of 1,234.49. However, this was before Musk started selling up to 10% of his stake in the company. After taking a dive, the TSLA RSI levels also seem to be trending upwards once again.
Tesla Competitor Rivian Struggles to Deliver
After a strong listing last week on Wall Street, Tesla’s competitor and EV carmaker has been struggling as well. In a recent Amazon test of a Rivian electric van, it failed to deliver the expected performance. The battery performance was below the EV startup’s claims.
Amazon has already pledged to put 10,000 cars of Rivian electric on-road by the next year after months of testing in 15 cities. the publication also noted that the battery drained 40% faster than usual upon turning on the van heating or cooling systems.
In its prospectus, Rivian said that its all-electric delivery van would have anywhere between 120-150 miles. Amazon holds a 20% stake in Rivian. It has also ordered 100,000 vans of its own with the company.
After its blockbuster debut on Wall Street last week, the RIVN stock has struggled badly as the company has been hit with a number of bad news. Last week, there was news that Rivian and Ford have dissolved their earlier plans for a joint EV. In mid-October, ford gave up its seat on Rivian board.
On Monday, the RIVN stock was down more than 8% closing at $118 levels. The stock has corrected more than 30% from its high of $172.