Tesla’s (NASDAQ:TSLA) stock fell 1.7% in regular trading yesterday and shed another 2.1% in extended trading after the pricing of the much-awaited Cybertruck irked investors. CEO Elon Musk unveiled the electric pick-up truck at the official delivery event from the Gigafactory Austin yesterday afternoon.
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Cybertruck’s Deliveries and Pricing Disappoint Investors
Musk showed off the features of the Cybertruck, including its bulletproof stainless steel body and rock-solid windows, but refrained from disclosing the price range. The prices were revealed on the electric vehicle (EV) maker’s website. Only 10 Cybertrucks were delivered yesterday, while analysts and investors had hoped for deliveries of 10 to 30 units.
The most disappointing part was that the base model rear-wheel drive version of the Cybertruck is now priced at $60,990, much higher than the original launch price of roughly $40,000 before tax breaks and incentives, as stated in 2019. The commercial deliveries of the base model Cybertruck are scheduled for 2024. Meanwhile, the “Cyberbeast” is priced at $99,990, with the all-wheel drive version costing $79,900.
Musk boasted that the electric pick-up would “change the look of the roads,” and exclaimed that the “future finally looks like the future.” The high price should not surprise investors as Musk warned of unique production challenges in Cybertruck’s manufacturing on several occasions earlier. While the Cybertruck did mark Tesla’s official entry into the electric pick-up truck market, its high pricing and delayed deliveries could benefit rivals Ford (NYSE:F), General Motors (NYSE:GM), and Rivian (NASDAQ:RIVN).
Is Tesla a Good Buy?
Owing to the tough macro environment, company-specific issues, and subdued demand for EVs, Tesla currently has a Hold consensus rating. This is based on 14 Buys, 13 Holds, and six Sell ratings on TipRanks. The average Telsa price forecast of $247.29 implies 3% upside potential from current levels. Year-to-date, TSLA stock has zoomed 122.1%.
