Remember your childhood, when you’d watch films showing flying cars, we used to think to ourselves, “If that’s what the future holds, I can’t wait to see it”? Well, the future has arrived, but unfortunately, flying cars are not a part of it. Not even the one the Weasleys used to have. However, be in no haste to get upset about these dashed hopes. Elon Musk is here to save the day with Tesla's Cybertruck finally beginning production. Too bad this futuristic-looking truck doesn’t have the upward momentum that Tesla’s share price had following this news.
It's fair to say that Tesla CEO Elon Musk hasn't always delivered on his promises. The list of his unfinished projects is rather long. Nevertheless, one item can be finally struck off – this week, Tesla began production on the Cybertruck four years after unveiling its prototype and two years behind its intended production schedule. However, it couldn’t hurt Tesla stock to gain 5% over the last few days.
The all-electric truck has encountered a series of setbacks along the way. Its public launch was memorable, with its designer throwing a heavy metal ball into its supposedly unbreakable windshield.
Supply-chain disruptions and Tesla's focus on other endeavors have delayed the “hall-of-famer” debut. According to Musk, once production begins, the automaker could deliver between 250,000 to 500,000 units per year. However, Wall Street analysts project only 10,000 units to be delivered in 2023, increasing to ten times that number in 2024. Mass production is set to begin at the end of this year.
Tesla originally estimated the truck would start at $39,900 for the single-motor and rear-wheel drive model. The dual-motor, all-wheel drive version was expected to cost around $60,000, and the most expensive version, with three electric motors and all-wheel drive, would have a price tag of approximately $70,000. But that was back in 2019 before inflation took hold. Besides, Cybertruck buyers may be eligible for the US’s $7,500 federal EV tax incentives.
Nevertheless, numerous questions remain unanswered. Some of these answers may be obtained in Tesla's second-quarter earnings report, scheduled for release on Wednesday evening. Wall Street anticipates Tesla to generate around $2.7 billion in operating profit from $24.8 billion in sales, compared to $2.7 billion in profit from $23.3 billion in sales during the first quarter.
It is crucial to provide a gentle reminder: conducting thorough research before making trading decisions is the only path to success in the markets. Utilizing various trading tools, such as the economic calendar or stock screener, and considering the opinions of analysts can assist in market analysis. However, above all, all decisions must be driven by your own knowledge.
