Tesla's Cybertruck enhances the brand and resembles an SUV rather than a pickup

 Tesla's Cybertruck enhances the brand and resembles an SUV rather than a pickup

Tesla's Cybertruck enhances the brand and resembles an SUV rather than a pickup

Two years later than planned, the Cybertruck is making its hot pickup truck debut to take on competitors like the Ford F150 Lightning, the Rivian Automotive R1T, and the General Motors Hummer EV.

On Friday, it was predicted that Tesla's market value would drop by almost $15 billion, to $235.45.

Among the first dozen clients to pick up a car on Thursday was Reddit co-founder Alexis Ohanian, who said that Tesla's more pricey than anticipated The outside of the Cybertruck pickup is distinctive, and inside it feels and drives like a Model X SUV.

Ohanian said, "This is the beginning of an epic journey," as he drove the Cybertruck for the first time live on the social media site X. Large yet not heavy.

While traveling from an Austin, Texas, Tesla delivery event to Florida, he said, "(It's a) super super futuristic feeling."

With a starting price of $60,990, the long-delayed Cybertruck is 50% more costly than what CEO Elon Musk had advertised in 2019 and is anticipated to draw, at least initially, a wealthy and exclusive clientele.

However, the Cybertruck—which is modeled after the James Bond movie's submarine-turned-car and is constructed of gleaming, bulletproof stainless steel—is probably going to improve Tesla's reputation, which experts believe would benefit from a significant price reduction to increase demand. has an impact. and a branding specialist.

"There will undoubtedly be a rise in awareness due to the Cybertruck's high level of attention. It makes me think of Tesla once again," said Spencer Immel, a partner at the consumer research company Langston.

"But we don't think it is going to assist Tesla become a mass-market brand as well as compete with brands like Ford that concentrate on serving the everyday car buyer," he said.

Indeed, analysts were alarmed by the hefty cost of the electric pickup and the protracted wait for a large cash payout, which caused Tesla shares to drop by about 2% on Friday.

The Cybertruck isn't expected to have a significant impact on Tesla's financial situation in 2019. According to Bernstein, there will be 250 deliveries this year and 75,000 the next, both of which "may be ambitious."

According to Musk, Tesla is anticipated to produce 250,000 Cybertrucks annually by 2025.

The business has issued many warnings that growing the product and achieving positive free cash flow would be very difficult for it and may not happen until mid-2025, which might have a detrimental effect on profitability.

According to Bernstein analysts, "Tesla has a product problem indicating that is, an aging line-up that fails to sufficiently address the market, and possibly no new mass-market alternatives until late 2025."

Particularly at a time when the firm is battling declining demand for electric cars and growing competition, Tesla's image as a manufacturer of innovative automobiles is greatly enhanced by the Cybertruck, the company's first new model in over four years.

On Friday, Tesla was expected to lose almost $15 billion in market value, closing at $235.45. LSEG data indicates that it is presently selling at around 65 times its future 12-month earnings forecasts.

The stock fell more than 65% in 2022, but this year it has almost doubled.

Two years later than planned, the Cybertruck is making its hot pickup truck debut to take on competitors like the Ford F150 Lightning, the Rivian Automotive R1T, and the General Motors Hummer EV.

Analyst Tom Narayan of RBC Capital Markets said, "In our opinion, the Cybertruck is a 'halo' product that draws consumers to the brand for mainstream vehicles including the Model 3 and Model Y."