Electric vehicle (EV) maker Tesla (NASDAQ:TSLA) continues to disappoint its customers with persistent delays in the deliveries of the much-awaited Cybertruck. During the first-quarter earnings call in April 2023, CEO Elon Musk said that Tesla is building “Alpha versions” of the Cybertruck on its pilot line for testing and plans to have a “great delivery event” likely in the third quarter. The third quarter has ended and the company has yet again crushed hopes of buyers waiting for the electric pickup truck.
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Persistent Delays
Tesla initially announced the launch of its futuristic, stainless-steel-bodied Cybertruck in 2019, with production and deliveries expected to commence in 2021. However, the company repeatedly delayed its production, citing component shortages.
In July, ahead of the Q2 earnings report, the company tweeted that it finally built its first Cybertruck at the Austin, Texas Gigafactory. During the Q2 earnings call, when questioned by an analyst about the Cybertruck orders, estimated delivery schedules, pricing, and specifications, Musk said that there are about 10,000 unique parts and processes going into the Cybertruck. This makes it difficult to predict the ramp initially, the CEO explained. That said, he added that the company would deliver the model this year and make it in high volume in 2024.
“I do want to emphasize that the Cybertruck has a lot of new technology in it, like a lot,” said Musk.
The third quarter has ended, and customers are eagerly looking forward to details on deliveries of the Cybertruck, especially its pricing, given high inflation. While Tesla is confident about the prospects of its Cybertruck, it should be noted that the company now faces competition from Ford’s (NYSE:F) F-150 Lightening electric truck, Rivian’s (NASDAQ:RIVN) R1T pickup truck, and General Motors’ (NYSE:GM) GMC Hummer EV.
According to the Wall Street Journal, pre-production versions of the Cybertruck have been spotted in certain places, including San Francisco, sparking excitement about the pickup truck’s eventual release.
As investors look forward to Tesla’s Q3 deliveries report today, any favorable information on Cybertruck deliveries would be welcomed.
Is TSLA a Good Stock to Buy?
Wall Street is cautiously optimistic about Tesla, with a Moderate Buy consensus rating based on 12 Buys, 12 Holds, and four Sells. The average price target of $273.46 implies 9.3% upside potential. Shares have rallied 103% year-to-date.
