
In what’s shaping up to be a shocking twist in the electric vehicle saga, Tesla’s much-hyped Cybertruck launch has hit a roadblock, sending the company’s stock spiraling down over 2%.
The unveiling of Tesla’s futuristic truck, a brainchild of CEO Elon Musk, couldn’t steer clear of investor skepticism, despite its long-awaited fanfare.
The Cybertruck, starting at a jaw-dropping $60,990 – a steep climb from the initially promised $39,900 in 2019 – has left investors and potential buyers reeling.
With the top-tier model nearing a whopping $100,000, doubts are swirling about the truck’s market demand and its place in Tesla’s electric empire.
Tom Narayan, the lead equity analyst for global autos at RBC Capital Markets, didn’t mince words on Yahoo Finance Live, stating, “There were a lot of folks in 2019 that wanted this product.”
He predicts a mere 20% conversion rate from reservations to actual purchases, casting a shadow over Tesla’s latest offering.
The Cybertruck, which deviates radically in design from traditional pickup trucks, targets a very specific, niche customer base.
Musk himself hinted at this during the launch event, held in a dimly lit room, where he quipped, “Finally, the future will look like the future.”
This statement came just days after Musk’s explosive interview with The New York Times, where he unleashed a torrent of expletives at advertisers deserting platform X.
But the truck’s launch isn’t just about the vehicle itself; it caps off a rollercoaster year for Tesla.
The company’s stock has ridden the highs of AI ambitions and grappled with the lows of multiple price cuts and squeezed margins.
Narayan suggests the Cybertruck is more of a “halo car,” aimed at boosting demand for Tesla’s more mainstream models, the Model 3 and Model Y.
Despite Narayan’s bullish stance on Tesla with a 12-month price target of $301 and an Outperform rating, he doesn’t see the Cybertruck as a major stock driver.
In his view, the truck was never meant to be a high-volume product.
Instead, he believes Tesla’s future hinges on “autonomy, software, robotaxi, and full-self driving,” which he expects to account for a whopping 90% of the company’s growth, overshadowing traditional car and truck sales.
As the dust settles on the Cybertruck launch, Tesla finds itself at a critical juncture.
Will the futuristic truck rev up the company’s fortunes, or will it remain a niche novelty in Tesla’s ambitious vision of an autonomous, electrified future?
Only time will tell, but for now, the market has cast its vote, and it’s one of caution and concern.