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Alexey Razin
The start of deliveries of commercial Tesla Cybertruck electric pickup trucks exposed two shortcomings of the long-awaited car in the eyes of buyers and investors, apart from the controversial design: a high price, which exceeded the level promised in 2019 by one and a half times, as well as a limited power reserve compared to the same promises four years ago.
Image source: Tesla
The Tesla Cybertruck’s debut as a production electric vehicle this week was very tentative, as only ten customers from those who pre-ordered it in November 2019 received it. In itself, a long wait for delivery may become a problem for Tesla investors, since it is obvious that this model will not be able to have a significant impact on the company’s revenue for a very long time. Bernstein analysts, in particular, expect, that by the end of this year Tesla will deliver no more than 250 pickups, and next year the circulation will not exceed 75,000 copies. Let’s remember that Elon Musk at the quarterly reporting conference this fall said that next year the company expects to produce no more than 125,000 pickup trucks, and in 2025 this number could double to 250,000 vehicles.
Morgan Stanley analysts believe that in 2025 Tesla will receive no more than 5% of its total revenue from Cybertruck sales, and the profitability of the model will remain zero. Much will also depend on the company’s pricing policy, because now the stated price of the Cybertruck scares off many potential buyers, and therefore some experts expect that Tesla will soon have to reduce the price under pressure from competitors producing more affordable electric pickups. Morgan Stanley representatives also suggest that in the second half of the decade, Tesla will have to bring crossovers and pickup trucks of a more traditional design to the market, otherwise it will not be able to gain a foothold in this market segment with the Cybertruck alone.
HSBC experts also do not believe that revenue from the sale of Cybertruck will be able to greatly influence the company’s well-being until 2025 inclusive, but I believe the main task of this model is to attract customers’ attention to other products of the brand. Wedbush Securities specialists share a similar point of view. In the coming years, Bernstein analysts added, the main problem for Tesla will be its aging model range, which does not cover the mass market segment, and a more affordable offer from the company will not arrive until the end of 2025, they believe.
Reddit co-founder Alexis Ohanian was among the first ten buyers of the Tesla Cybertruck, and in his video review of this pickup noted a smooth ride comparable to the Tesla Model X, and no bulky feeling when driving a pickup truck. The new Cybertruck owner added positive emotions to the feeling that he would become the “coolest dad” when picking up his child from school in this car.
Tesla shares reacted to the Cybertruck’s entry into the market by decreasing by up to 2% at the moment, but by the close of trading they had won back some of the losses, limiting them to about half a percent. In any case, this event did not become a catalyst for the growth of quotes, which indicates the contradictory nature of both the model itself and the circumstances of its appearance on the market.
2023-12-02 05:35:00
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