Elon Musk-led electric vehicle (EV) manufacturer Tesla (TSLA) has shifted gears and is taking orders for pricey Cybertrucks, while halting orders for the cheapest version priced at about $61,000. The company is taking immediate orders for the $99,990 dual-motor variant, promising deliveries between August and September.
Moreover, Tesla’s website shows that the $119,990 tri-motor Cyberbeast will be available for delivery between October and December. Overall, the company is ensuring faster deliveries of the expensive versions compared to the previous target of 2025.
Tesla’s Cybertruck Woes
Tesla has mysteriously halted taking orders for the cheapest Cybertruck variant with a 250-mile range, which was expected to be delivered in 2025. Musk’s initial ambition was to introduce the base version for $40,000 with a 500-mile range in one charging.
The surprise switching of order intake has made analysts believe that the demand for the higher-priced version of Cybertruck is much lower than projected, with Tesla holding tons in inventory. The base version is said to have received over 1 million bookings on its launch. Several customers have indicated that they are waiting for cheaper versions of the pick-up trucks with a higher driving mile range, as initially revealed.
Musk has invested heavily in the research and development of Cybertrucks and aims to manufacture 200,000 units annually. Cybertruck was unveiled in 2019 and was expected to begin production in 2021. However, the arrival of the COVID-19 pandemic, related shutdowns, and supply chain constraints hampered Musk’s vision. After being delayed several times, the wait was finally over in November 2023, when Tesla started the commercial deliveries of the trucks.
Demand for TSLA’s Cybertrucks
According to Reuters, which cited Cox Automotive, Tesla sold 4,800 Cybertrucks in July. This marked the best month for Cybertrucks in the category of autos priced at over $100,000 in the U.S.
Year-to-date, roughly 16,000 Cybertrucks have been sold. However, a Cox Automotive spokesperson expressed concerns that it might be tough for Tesla to sustain such solid volumes at high price points. Tesla investors and enthusiasts are closely following the demand for the Cybertruck, given the significant time and investments involved.
Insights from TipRanks Bulls Say, Bears Say Tool
According to TipRanks Bulls Say, Bears Say tool, analysts are worried about the declining demand for EVs. Bears also noted that Tesla’s brand desirability is dropping compared to rivals and its auto margins are weaker than expected.
On the other hand, Bulls are impressed with Tesla’s solid quarterly revenues and its high market share in the global EV market.
Is Tesla a Buy, Sell, or Hold?
The overall sentiment for Tesla stock seems cautious. On TipRanks, analysts have awarded TSLA a Hold consensus rating, backed by ten Buys, 14 Holds, and seven Sell ratings. The average Tesla price target of $211.59 implies 5.8% upside potential from current levels. TSLA shares have declined 19.5% so far this year.
