Tesla’s introduction to the Model Y underwhelms and stock promptly falls

Tesla Inc.’s newly revealed Model Y has failed to excite Wall Street, with some investors saying the unveiling of the crossover vehicle played out like an infomercial that sought to mask weaker Model 3 demand and a cash grab.

Tesla TSLA, -5.01%  shares lost 5% on Friday to close at their lowest since Oct. 22. They are down more than 6% from the moment that Chief Executive Elon Musk announced the vehicle’s unveiling date on Twitter, and off nearly 30% from a September 2017 record high.

The crossover starts at $47,000 and ordering one requires a $2,500 deposit, which is more than what Tesla required at the time of the Model 3 reveal.

See also: Tesla’s Elon Musk unveils Model Y crossover, with $47,000 price tag

At the unveiling late Thursday, Musk said he expected to sell more Model Ys than Tesla’s other vehicles combined. Production of the car is expected to start in late 2020, and a standard-range, cheaper car is expected to roll out the factory floor in early 2021 and cost about $39,000.

“We remain concerned about the manufacturing timeline,” said Toni Sacconaghi with Bernstein. The late-2020 goal appears similar to the Model 3’s, and ultimately the sedan was delayed by 9 to 12 months, he said.

Read more: Tesla’s creditworthiness still “strained,” Moody’s says

The more expensive deposit may also stoke bearish sentiment on Tesla’s cash situation, Sacconaghi said. Ordering a Model 3 at the time of its launch required a $1,000 deposit.

Model Y orders could be “muted,” said Joseph Spak at RBC Capital Markets. “The vehicle isn’t available for nearly two years and consumers may realize that putting down money early for the Model 3 didn’t yield many benefits,” he said.

The bigger question is how much the Model Y will cannibalize the Model

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