This article discusses the persistent delays in the delivery of Tesla’s highly anticipated Cybertruck and the implications it has for the company. Despite CEO Elon Musk’s assurance during the first-quarter earnings call in April 2023 that Tesla was building “Alpha versions” of the Cybertruck for testing and planning a “great delivery event” in the third quarter, the company has once again disappointed its customers.
Tesla initially announced the launch of the Cybertruck in 2019, with production and deliveries expected to begin in 2021. However, the company has repeatedly pushed back its production timeline, citing component shortages as the main reason for the delays.
In July, Tesla announced via Twitter that it had finally built its first Cybertruck at the Austin, Texas Gigafactory. During the Q2 earnings call, Musk explained that the Cybertruck consists of about 10,000 unique parts and processes, making it challenging to predict the ramp-up initially. However, he remained confident that the company would deliver the model this year and increase production volume in 2024.
As the third quarter ended, customers eagerly awaited details on Cybertruck deliveries, particularly concerning the pricing amid high inflation. It is worth noting that Tesla now faces competition from electric truck offerings from Ford, Rivian, and General Motors. These competing models, including Ford’s F-150 Lightening, Rivian’s R1T, and GM’s GMC Hummer EV, pose a challenge to Tesla’s domination in the electric truck market.
Reports from the Wall Street Journal state that pre-production versions of the Cybertruck have been spotted in certain locations, such as San Francisco, further fueling anticipation for its eventual release.
Tesla’s Q3 deliveries report, which is due to be released soon, is eagerly awaited by investors. Any positive information regarding Cybertruck deliveries would be well received by the market.
On the stock front, Wall Street maintains a cautious yet optimistic stance on Tesla. The stock currently has a Moderate Buy consensus rating based on 12 Buy recommendations, 12 Hold recommendations, and four Sell recommendations. The average price target of $273.46 implies a 9.3% upside potential. Tesla shares have seen a significant rally of 103% year-to-date.
Overall, while Tesla’s Cybertruck delays may have disappointed customers, the company remains a key player in the electric vehicle market. Investors and customers alike will eagerly await updates on the Cybertruck’s delivery timeline and pricing.