Cybertruck Launch Countdown Begins: Munster Flags Key Hurdle Amid Rising Buzz For Tesla's 'Spectacular Vehicle That Will Catch A Lot Of Attention'
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (TSLA) is gearing up for the launch of its Cybertruck on November 30. Analyst Gene Munster of Deepwater Asset Management is cautiously optimistic, citing a significant market for light pick-up trucks in the U.S. with sales around 3 million units. The Cybertruck is expected to have a slow production start, with estimates ranging from a few hundred to 10,000 units in 2023, potentially increasing to 35,000 in 2024 and 175,000 units per year later on. Despite over one million reservations, Munster believes only about 500,000 are solid potential buyers. He emphasizes that production, not demand, is the key concern for investors. Tesla's overall production is projected at 1.8 million units in 2023, with the Cybertruck contributing to a 25-30% delivery growth in 2025 and 2026. In comparison, the Model Y and 3 have a current production capacity of 800,000 units each. Tesla's stock saw a slight increase in premarket trading.
November 20, 2023 | 2:35 pm
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POSITIVE IMPACT
Tesla's Cybertruck is launching with high demand but cautious production estimates. The vehicle's success is critical for Tesla's delivery growth projections, with a potential 25-30% increase in 2025 and 2026.
The Cybertruck's launch is a significant event for Tesla, with high reservation numbers indicating strong demand. However, the cautious production estimates could limit the short-term stock impact. The long-term growth potential remains positive, contributing to a likely increase in stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Ford Motor Co. is the current leader in the light pick-up truck category with its F-150. Tesla's entry into this market with the Cybertruck could potentially impact Ford's dominance.
Tesla's Cybertruck is entering a market where Ford's F-150 is a leader. While the Cybertruck's production is starting slow, its long-term success could pose a competitive threat to Ford, potentially impacting Ford's stock negatively in the short term due to investor concerns over increased competition.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60