The long-awaited Cybertruck has finally made its debut as Tesla delivered the first batch of its avant-garde pickup trucks to customers during a live-streamed event in Austin, Texas. With its arrival, investors, Wall Street analysts, and potential truck buyers now have the opportunity to compare specifications across all the battery-powered trucks currently on the U.S. market.
The Price Challenge
One of the major considerations is the cost of the Cybertruck. Starting at above $60,000, some expressed surprise at the price point. Future Fund Active ETF cofounder and Tesla shareholder Gary Black had hoped for a lower starting price, closer to $50,000, similar to that of an F-150 Lightning. However, Wedbush analyst Dan Ives noted that the pricing was roughly in line with his expectations.
The Luxury Performance Truck
Undoubtedly, the Cybertruck falls into the realm of expensive pickup trucks, offering trims ranging from approximately $60,000 to $100,000. While Rivian Automotive’s R1T truck is positioned in the higher-end market, with a maximum price of about $90,000, Ford’s F-150 Lightning covers a broader range of prices from around $50,000 to over $90,000. Meanwhile, General Motors is catering to fleet customers with its all-electric Silverado.
For those seeking the pinnacle of luxury and performance, there’s the “Cyberbeast” trim, starting at approximately $100,000. This places it firmly in the category of a luxury performance truck, according to Battle Road Research’s Ben Rose. However, it’s worth mentioning that the lower-priced version of the Cybertruck won’t be available until 2025. While Tesla has already amassed over 1 million pre-orders for the truck, CEO Elon Musk has stated that the company will initially focus on producing the more expensive versions. The all-wheel drive version, which starts at $80,000, is slated to become available in 2024.
When it comes to range, the Cybertruck boasts a decent performance. The maximum range listed on Tesla’s website for any version is 350 miles. In comparison, Rivian and GM offer truck versions that can go above 400 miles on a single charge.
In conclusion, the arrival of the Cybertruck marks a significant milestone for Tesla and the electric truck market. While the pricing and availability of certain trims may be a point of consideration for buyers, the Cybertruck’s innovative design and impressive range are sure to attract attention from those seeking a unique and environmentally friendly pickup truck experience.
The Significance of Range in Electric Trucks
The Vital Role of Range in Trucks
Range plays a vital role in trucks, especially when it comes to towing. Unlike electric sedans or crossover vehicles, electric trucks have a significantly greater range per charge, typically exceeding 100 or 200 miles. This extended range is essential for maximizing the utility of electric trucks.
Nevertheless, managing range efficiently can be challenging for auto manufacturers. As the battery pack increases in size, there are diminishing returns. The weight of the larger battery pack becomes a burden and impacts the energy efficiency of the vehicle. Additionally, batteries are the most expensive component of an electric vehicle (EV), leading to potential profit reductions when increasing the range extensively.
The Exciting Features of the Cybertruck
One EV that has garnered significant attention is the Cybertruck. Besides its impressive range, there are several noteworthy features that make it captivating. For instance, the Cybertruck has the capability to power a home, akin to an F-150. Furthermore, its acceleration is exceptional, boasting a zero to 60 miles per hour time of under three seconds – a true Cyberbeast.
Tesla Stock Performance
Tesla stock experienced a decline of 1.8% during Thursday trading. Pre-market trading on Friday showed an additional decrease of 2.4%. In comparison, S&P 500 and Nasdaq Composite futures were down 0.2% and 0.4%, respectively.
The decrease in Tesla’s stock price following significant events like the Cybertruck delivery event is not surprising. Investors often adhere to the adage of “buy the rumor and sell the news.” As a forward-looking market, the stock market reacts to expectations and can lead to fluctuations after major announcements.
Despite these fluctuations, Tesla stock showed promise earlier in the week, maintaining a price of approximately $235 per share on Friday, aligning with the beginning of the week. This stability is reasonably expected since investors were generally aware of the imminent arrival of the Cybertruck and its anticipated capabilities.
Impact on Stock Performance
Ultimately, the success of the Cybertruck will significantly influence Tesla’s stock performance. Analysts predict approximately 1,500 deliveries in 2023, followed by approximately 78,000 in 2024. In comparison, overall Tesla model deliveries are projected to reach approximately 1.8 million units in 2023 and 2.2 million units in 2024.
These anticipated figures highlight the significance of the Cybertruck for Tesla’s future growth. The market will closely monitor its sales, ultimately determining the trajectory of Tesla’s stock.