AutoWeb, Inc. (AUTO) declined in the current market after the company announced its new agreement in a press release. AutoWeb, Inc. (AUTO) stock values at around $3.16, losing more than 9.89% from the previously closed value. At the end of the last trading session, the stock closed at about $3.54. The stock volume traded in the previous trading session was around 174.47K shares.
Reasons for AUTO stock gain
AutoWeb, Inc. (AUTO) announced in a press release about its new commercial agreement. Customers of AutoWeb’s automotive websites, including Car.com and Usedcars.com, can now subscribe to Autonomy to drive a Tesla Model 3 month-to-month after a three-month hold period.
AutoWeb, one of the significant new car lead generation services in the business, has connected Original Equipment Manufacturers (OEMs) and car dealers with auto buyers for more than 30 years. AutoWeb’s newly launched 2nd hand vehicle buying business allows clients to sell their old vehicle and purchase or lease a new one.
Currently, 90% of consumers must finance or lease their cars. The term to finance a vehicle is about six years, while the lease averages around three years. The vehicle subscriptions business model fills a void in the market for consumers seeking flexibility and low rates. Autonomy’s unique Tesla Model 3 subscription service is the most affordable, quickest, and most effortless way to get a Tesla Model 3.
The effect on the stock decline
As soon as the news hit the market, the stock of AutoWeb, Inc. (AUTO) slightly lost its value. The new offer by the company seems lucrative, and the investors are expecting an increase in sales. Investors are taking considerable interest in the stock of the company. That is why the stock of AutoWeb, Inc. (AUTO) is slightly declining due to high trading volume.
Conclusion
The company has introduced a new business model due to which its revenue might increase in the future. The company’s subscription model will allow the customers to get a Tesla Model 3 most quickly. Due to this, the company is anticipating new customers getting its subscription.
