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Tesla (NASDAQ:TSLA) officially enters the electric pickup market this week with the highly-anticipated Cybertruck. The Austin-based company has a Cybertruck delivery event scheduled for 2:00 p.m. Eastern time on November 30 to dole out the first ten or so EV pickups.
The electric pickup truck concept was first announced by Tesla (TSLA) in 2019 and pilot production finally began earlier this year. While the Cybertruck is not anticipated to be a high-volume seller, a well-known Cybertruck reservation tracker estimates that net reservations currently stand at 2.10M. The market for full-size pickup trucks is large, with Ford Motor (F), General Motors (GM), and Toyota Motor (TM) all generating huge profits. The Cybertruck will compete against the all-electric models such as the Ford (F) F-150 Lightning, the GMC Hummer EV, the Rivian Automotive (RIVN) R1T, the all-electric Chevrolet Silverado, and the upcoming Ram 1500 REV. Further down the road, the Fisker (FSR) Alaska pickup truck and Canoo (GOEV) pickup trucks are expected to enter the market.
Tesla (TSLA) is expected to make the Cybertruck available in three different variants. The entry-level pickup features one motor and a rear-wheel-drive system, while the two- and three-motor models will both have all-wheel drive. Tesla (TSLA) has claimed the single-motor model will go from zero to 60 mph in 6.5 seconds and top out at 110 mph. Meanwhile, the dual-motor Cybertruck is reported to hit 60 mph in just 4.5 seconds and have a top speed of 120 mph. The Tri-Motor model is said to feature 0-to-mph speed of zero to 60 mph in 2.9 seconds with a top speed of 130 mph. In terms of muscle, Elon Musk has said the single-motor model will be able to tow 7,500 pounds, the dual-motor 10,000 pounds and the tri-motor 14,000 pounds. There are some differing opinions on if the Cybertruck's rigid external steel exterior will attract buyers or create worries about accident repairs.
Wedbush Securities analyst Dan Ives thinks Tesla (TSLA) will give out pricing at the event this week. He said industry whisper numbers for the single motor are in the ~$50k range, with prices for the dual and tri-motor variants likely to be in the $60K to $80K range. Ives forecasts that Tesla (TSLA) will achieve a 10K-unit production quarter during the first half of 2024 before ramping higher in the back half of the year. While the firm noted the Cybertruck will not be a major sales driver for Tesla (TSLA), the new model introduction is seen as significant to the broader Tesla growth story and could recharge the broad Tesla halo effect. On that line of reasoning, Deutsche Bank analyst Emmanuel Rosner pointed out that the appearance of Cybertrucks at Tesla's (TSLA) showrooms over the extended Black Friday to Cyber Monday weekend led to big crowds and generated some positive brand buzz.
Shares of Tesla (TSLA) gained 2.80% in afternoon trading on Tuesday and are up about 18% over the last six weeks.
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