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StockBeat - Wall Street Throws Shade on Tesla's Cybertruck; Shares Sink

Published 22/11/2019, 20:02
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Investing.com - Tesla’s electric pickup truck, the “Cybertruck,” seemed to have everything, with CEO Elon Musk claiming it is bulletproof car, can go from zero to 60 mph in about 2.9 seconds and tow up to 14,000 pounds. But those claims have come into question after its armored glass windows were surprisingly shattered in a demo, sending shares of the electric vehicle company sharply lower.

Tesla (NASDAQ:TSLA) fell 6%.

Tesla CEO Elon Musk unveiled three versions of the Cybertruck: a low-end single-motor with a range of about 250 miles per charge, starting from $39,900, a dual-motor cost priced at about $49,900, with about 300 miles of range and a trimotor costing $69,900 with 500 miles of range.

Production of the lower-priced Cybertrucks should begin in late 2021 with the trimotor to follow in 2022, the company said.

But the skepticism from some on Wall Street is already flowing in.

“From a demand perspective this will be a more niche market, as we believe hitting the 150,000 to 175,000 unit threshold in its first full year of deliveries (likely 2022) is the line in the sand out of the gates and could be a tough bogey to hit,” Wedbush said in a note.

The Cybertruck has racked up the fanfare from analysts and auto enthusiasts alike, but Tesla’s efforts to keep up the recent uptick in Model 3 production remains the story for the stock.

While this product announcement is long-awaited and exciting, the main focus for the stock over the coming months is around the recent strong 3Q results and whether that level of higher demand and profitability is sustainable going forward into 2020,” Wedbush added.

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