Tesla Cybertruck Event Flops

Dec. 01, 2023 9:23 AM ET Tesla, Inc. (TSLA)

Summary

• Tesla, Inc.'s highly anticipated Cybertruck delivery event was a disappointment, with higher pricing and lower range than expected.
• The Cybertruck's pricing now puts it in competition with other expensive electric pickup trucks, potentially impacting demand.
• Tesla's EPS estimates continue to drop, and there is a risk of CEO Elon Musk needing to sell Tesla shares to fund other ventures.

Tesla, Inc.'s much-anticipated Cybertruck delivery event, held after years of anticipation and delays, resulted in disappointment due to higher pricing and lower range than expected. The article explores the aftermath of the event, analyzing the impact on Tesla's stock and the potential challenges the Cybertruck may face in the market.

Key Points:

1. Disappointing Cybertruck Event:The article highlights the Cybertruck's initial handover event as a significant disappointment, with Tesla deviating from a traditional pickup form factor and facing challenges in meeting initially projected ranges and prices.
2. Pricing and Range Challenges:Tesla's Cybertruck, which was initially expected to have specific trims and price points, now faces pricing challenges, starting at nearly $80,000 before incentives. The increased cost places it in competition with other expensive electric pickup trucks, potentially affecting demand.Concerns are raised about the Cybertruck's demand outlook, given its higher pricing and competition with luxury electric vehicles like Rivian's R1T and Ford's F-150 Lightning.
3. Production and Capacity Outlook:

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