Will Cybertruck Push Tesla's Valuation Back Toward $1 Trillion Amidst Numerous Challenges?
$Tesla (TSLA.US)$ has delivered its first Cybertrucks at an event on Thursday, with a higher price tag and plenty of challenges. Shares of Tesla retreated and finished the day down 1.8%.
Why Tesla stock falls?
●Higher price tag
The price tag for the Cybertruck is higher than the starting price of just under $40,000 Tesla gave when it first announced the vehicle in 2019.
The price for the cheapest model of its much-hyped and long-delayed Cybertruck will start at $60,990, which will not be available until 2025. An all-wheel drive version will be available for delivery in 2024, with a $79,990 price tag. The priciest version, known as the Cyberbeast, will sell for an estimated $99,990 and be available in 2024.
●Difficult to produce
The truck is made from unpainted stainless steel, a material not generally used for vehicles. The durability of the material makes it difficult to build with, and difficult to repair.
It also has a unibody design rather than having a separate body and chassis, as most large pickups do. Automakers generally use body-on-frame designs for heavy duty trucks because of the strength and flexibility it provides when pulling heavy loads.
●Unimpressive range
The Cybertruck's longest-range version can drive an estimated 340 miles, and comes with a "range extender" or extra battery pack that extends its range to 470 miles. In 2019, Musk had said the truck would be able to travel 500 miles or more on a single charge.
●Behind competition
Cybertruck, two years behind schedule, enters a hot pickup truck market to compete with the likes of $Ford Motor (F.US)$'s F150 Lightning, $Rivian Automotive (RIVN.US)$'s R1T and $General Motors (GM.US)$' Hummer EV. This isn't the competition-free environment it was back then, and the Cybertruck's capabilities don't seem as remarkable as they did four years ago. Many of these other trucks have capabilities that come close, and in some cases may even exceed, Tesla's.
Tesla gets $310 price target
In a Tuesday research note, tech analyst Dan Ives at Wedbush said the vehicle's debut would be a "big moment" for Elon Musk's company, maintaining his 12-month stock-price target of $310, implying a $996 billion market capitalization.
Launching Cybertruck is important for the broader Tesla growth story over the coming years and also will prove to the doubters that Musk can successfully expand the Tesla halo effect as more consumers head down the EV path," Ives wrote.
The new product is unlikely "move the financial needle" for the EV maker in 2024 but will demonstrate to investors "the innovation and mind share lead that Tesla has built" versus legacy automakers, he added.
Musk didn't speak about specific delivery dates for the trucks, and some of the trims were showing availability as late as 2025. Dan Ives said in a note late Thursday that he estimates Tesla is able to make 2,000 to 3,000 Cybertrucks this quarter, reaching 10,000 units a quarter in the first half of next year.
Source: Bloomberg, Reuters, Business Insider
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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FibonacciBlu : it's actually underpriced for what it is expensive or not
Samdou2006 : Tesla’s cybertruck is an amazing innovation, and the best out there
Rexon Capital : Tesla is going after the popular pick up truck market in US. Today, Ford and GM are dominating this market.
It is too tunnel vision to look at cost and miles, without looking at functionalities. It is like comparing Apple to Nokia. Nokia is cheaper but why nobody uses it? Because it does not have the functionalities of Apple.
Furthermore, add-ons will be a big thing for Tesla. Another source of revenue. If you cannot see the potential of Cybertruck, you will miss the next rally. Just like a certain hedge fund that went against Tesla and now is on the streets.
$Tesla (TSLA.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Apple (AAPL.US)$
safri_moomoor : buy open analisis maket ok ..lest go![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
72734102 : Hey, slow ones! Tesla is way More than just an EV company! Get head out of ass and research. Albeit they are number one and will be for quite some time! Please research the well of wealth Tesla possess’s
72734102 : So far this year Tesla Shortys lost 12.68 Billion! Is g the he Next Squeeze coming already? We are loading up on buying more!
72734102 Rexon Capital : GM is losing lots of money on their over stocked inventory! Margins are terrible and New UAW contract will weaken margins Even More! While Tesla continues to be more self sufficient and Lowering costs!