Tesla’s (NASDAQ:TSLA) polarizing Cybertruck finally started making its way to its first customers. The EV leader held a delivery shindig last week to showcase its abilities and introduce updated prices for the different models. From now on, you can expect to see the avantgarde pickup on the roads although deliveries in earnest will only begin next year,
With respective prices of $60,990, $79,990 and $99,990 for the rear-wheel drive (RWD), all-wheel drive (AWD), and tri-motor or “Cyberbeast” variants, the Cybertruck RWD and AWD will be eligible for the full IRA credit as they both come in under the MSRP (manufacturer’s suggested retail price cap) $80,000 cap for pickup trucks. The Cyberbeast variant will be excluded from the perk. Deliveries for the Cybertruck AWD and Cyberbeast will begin in 2024, while the RWD trim will be available in 2025.
Assessing the vehicle’s attributes, Goldman Sachs analyst Mark Delaney likes what he sees. “We consider the Cybertruck capabilities to be impressive including 0-60 acceleration (as low as 2.6 seconds), turning radius (tighter than a Model S), towing (up to 11K pounds), ruggedness (bulletproof frame and rock resistant glass) and the latest technology (e.g. a 48V low voltage architecture, and steer-by-wire),” the 5-star analyst explained.
With robust consumer interest (on the 3Q23 earnings call, Tesla noted it already has more than 1 million reservations) yet also “potential headwinds” from the high price point and manufacturability, the main issue for investors will be around “how fast it ramps up.”
Tesla, for its part, has said it anticipates reaching a ~250,000 run-rate “at some point” in 2025.
Delaney is factoring in 1,500/50,000/150,000 Cybertruck sales in CY23/24/25, respectively. The company also noted on its Q3 earnings calls, that it would take between 12-18 months before the Cybertruck would be a “significant cash flow contributor.”
On balance, however, the Cybertruck does little to alter Delaney’s stance with the analyst seeing Tesla’s valuation as full, especially considering the 94% year-to-date increase in shares. Moreover, the prospect of reduced vehicle pricing to help boost higher volumes “could remain a headwind in 2024.”
Accordingly, Delaney stays on the sidelines with a Neutral rating and $235 price target implying shares are indeed fully valued. (To watch Delaney’s track record, click here)
That is more or less the Street’s general view, too. The stock claims a Hold consensus rating, based on 14 Buys, 13 Holds and 6 Sells. Additionally, the $246.93 average target suggests shares have modest upside of ~5% over the next year. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
