TLDR
- Tesla’s stock closed at $329.65, up 3.21% ahead of its Q2 earnings release on July 23.
- Tesla unveiled a new Model 3+ variant for China with a potentially longer driving range.
- The new model uses an NMC battery and less powerful motor, which could increase efficiency.
- Tesla could bring the model to the U.S., but logistical and regulatory hurdles remain.
- Barclays maintained a $275 price target but called Tesla’s Q2 earnings outlook “confusing.”
Tesla, Inc. (NASDAQ: TSLA) closed at $329.65 on July 18, gaining 3.21% ahead of its upcoming Q2 earnings announcement scheduled for July 23.
The EV giant is making headlines with the unveiling of the Model 3+, a new long-range variant set for release in China. While officially not confirmed for the U.S. market, the news has stirred speculation given its potential to push driving range even closer to the 400-mile mark.
The new model was revealed through documentation filed with China’s Ministry of Industry and Information Technology, as reported by Car News China. This Model 3+ will feature a single rear motor and use a nickel-manganese-cobalt (NMC) lithium-ion battery sourced from LG. The motor, a lower-output unit used in the Chinese base Model 3, appears to deliver around 260 horsepower, well below the 295 horsepower in the U.S. equivalent.
Range and Battery Efficiency Gains
While specific battery specifications weren’t released, sources speculate the pack may mirror the 78.4 kWh battery found in long-range versions already available in both the U.S. and China. There’s also a possibility it could use the 79.7-kWh pack from the U.S. long-range rear-drive variant. In China, the Model 3 long-range all-wheel drive leads with a 468-mile range under the CLTC test cycle. In the U.S., Tesla’s longest-range Model 3 offers 363 miles.
The new Model 3+’s combination of a more efficient motor and high-capacity battery raises hopes it might cross the 400-mile threshold. But questions remain whether Tesla will bring it stateside, given ongoing tariff restrictions on Chinese-made batteries and motors. Tesla is working to localize LFP battery assembly in the U.S., which could simplify the logistics.
Barclays Cautious Ahead of Q2 Earnings
Separately, analysts at Barclays reiterated their “Equal Weight” rating for Tesla, with a $275 price target, expressing mixed expectations ahead of the July 23 Q2 earnings release. They noted the “confusing” setup as the company faces weaker fundamentals despite elevated market hopes tied to its AI-driven autonomous vehicle initiatives.
Barclays forecasts Tesla’s 2025 vehicle volume could drop by 10%, and its Q2 auto margin, excluding regulatory credits, may remain low year-over-year. While the firm believes Tesla could still outperform due to optimism around AI and full self-driving capabilities, it highlighted how consensus 2025 EPS has dropped from over $3.20 earlier this year to $1.84.
Outlook
Between innovation with the Model 3+ and an uncertain earnings picture, Tesla remains at the center of investor attention. A U.S. version of the new Model 3+ could enhance Tesla’s lineup if range and cost efficiency align. All eyes now shift to the July 23 earnings call for clarity on margins, production strategy, and how far Tesla will push its latest model evolution.
