Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.
World News

Tesla waits a long time for Cybertruck payment and the price is high

The logo of a Tesla electric vehicle is placed on a car in front of a dealership in Drogenbos

The logo of a Tesla electric vehicle is placed on a car outside a dealership in Drogenbos, Belgium November 25, 2023. REUTERS/Yves Herman/File photo acquire license rights

Dec 1 (Reuters) – Tesla shares (TSLA.O) fell about 2% on Friday after the highly anticipated launch of its Cybertruck left analysts concerned about the electric vehicle’s high price and longer wait to obtain significant financial gains.

The $60,990 starting price for the long-delayed Cybertruck is more than 50% higher than what CEO Elon Musk touted in 2019 and a cost that analysts say will attract select, affluent buyers.

“Cybertruck will not significantly move Tesla’s financial needle in FY24…” Wedbush said in a note, while Bernstein analysts forecast 250 deliveries this year and 75,000 for l next year, saying both “could be ambitious.”

Musk said Tesla would likely reach a production rate of around 250,000 Cybertrucks per year in 2025.

The company has repeatedly warned that it will face significant challenges in developing the product and becoming free cash flow positive – likely not before mid-2025 – which could negatively impact profitability.

“Tesla has a product problem, that is, an older range that does not sufficiently respond to the market and does not have new offerings for the mass market until probably the end of 2025,” added the analysts at Bernstein.

The Cybertruck, Tesla’s first new model in nearly four years, is key to its reputation as a maker of innovative vehicles, particularly at a time when the company is battling slowing demand for electric vehicles and rising consumer demand. competition.

At $235.45, Tesla is expected to lose about $15 billion in market valuation on Friday. It currently trades at around 65 times its 12-month forward earnings estimates, according to LSEG data.

The stock has nearly doubled this year, after falling more than 65% in 2022.

The Cybertruck, two years late, enters a hot pickup truck market to compete with Ford’s (FN) F150 Lightning, Rivian Automotive’s (RIVN.O) R1T and General Motors’ (GM.N) Hummer EV .

“Cybertruck is more of a ‘halo’ product, in our view, intended to attract consumers to the brand for the Model 3 and Model Y mass-market vehicles,” said RBC Capital Markets analyst Tom Narayan.

Reporting by Samrhitha Arunasalam and Chavi Mehta in Bangalore; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

Acquire license rightsopen a new tab
888a6c8a a1d1 4800 8d4b 0b71eeaa354f

Chavi reports on U.S. technology companies, including semiconductor companies. His work typically appears in the Technology and Business sections.

Gn headline

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button