Is Tesla's Model Y Its Latest Vaporware?

Tesla announced the Model Y on Thursday evening and investors are clearly not impressed since the stock closed down over $14 or 5% to $275 on Friday. The shares are now down over $44 or 14% since Elon Musk announced the $35,000 Model 3 version and that the company would be closing almost all of its stores (which it has now halfway reversed). The stock did stage a mini-rally over the past six trading sessions but has fallen back to its recent low, so it looks like the short-term move up was a dead cat bounce.

Did Tesla announce its latest “vaporware”?

Over the decades technology companies have announced new products or features that would be available in the future. At times the these are called “vaporware” due to not being fully formed with first shipment dates months, if sometimes years, in the future. This may be part of Tesla’s overall grand strategy or another Hail Mary move.

While one reason to declare new or upgraded offerings is to give customers a roadmap and comfort about buying current solutions, another is to get customers to not buy a competing product and wait for what is shown on a PowerPoint slide or on a stage. While I fully expect the Model Y to be made, and in volume, presenting it now is a way to create uncertainty with consumers about buying a competitor’s vehicle.