Tesla (TSLA) Stock: Assessing the Cybertruck's Impact

Tesla Cybertruck on the road
Credit: Mike Mareen -

Tesla’s (TSLA) Cybertruck event has come and gone. At the company’s headquarters in Austin, Texas, Tesla held a lavish event during which its futuristic-looking vehicle reached its first batch of customers four years after its debut.

While celebrating the company’s new and unconventional Cybertruck pickup, CEO Elon Musk predicted the truck would usher in a new, more exciting future. Investors now want to know the level of impact the long-awaited product could have on Tesla stock in the quarters and years ahead. While there are still things to be sorted out such as production scale of the vehicle, we can start by dissecting the potential revenue and profits the Cybertruck can add to Tesla’s financial’s in the current fiscal year and next.

What we do know is that there will be three versions of the Cybertruck: A base model rear-wheel drive version, an all-wheel drive (AWD) Cybertruck and one referred to as “CyberBeast.” For each of the versions, Tesla provided updated details about various aspect of the truck, including price, driving range, and various features of the vehicle that requires some adjustments to prior expectations.

After the launch event, Tesla’s website revealed that the rear-wheel drive version which is is expected to have a 250 mile range battery and accelerate from 0 to 60 miles per hour in 6.5 seconds, is now priced at $60,990, about 50% higher than the original price of $39,900 in 2019. The AWD version is priced at $79,900. This version is expected to have a range of 340 miles and go 0 to 60 miles per hour in 4.1 seconds with a top speed of 112 miles per hour.

The “Cyberbeast” version will retail for $99,990. Its name does it justice with the an estimated 845 horsepower, around 320 miles of range, top speed of 130 miles per hour, and can from 0 to 60 miles per hour in a ridiculous 2.6 seconds. These Cybertruck features, particularly those of the “Cyberbeast” version, might have competitors including Ford (F), General Motors (GM) and Rivian (RIVN) wondering how Tesla pulled that off. These rivals were much earlier to the party, and began selling their more conventional electric pickups last year.

In that regard, the U.S. electric pickup truck market has not expanded the way that EV sedans have. As such, some OEMs, including both Ford and GM, are scaling back EV trucks until demand picks up. Many thought the electric pickup truck market would have grown much faster when the Cybertruck was initially revealed in 2019, during which the company began taking $100 refundable “reservations” for the vehicle. Tesla, which said it received more than one million reservations since its debut, began Cybertruck production in July this year.

For 2024, Wall Street analysts were forecasting Tesla to show more than $21 billion of revenue growth. Of that revenue total, a sizable portion was expected to be generated by Cybertruck sales. However, ahead of the event, Musk wanted to lower some expectations for the truck. In the Q3 shareholder letter, the company listed initial production capacity at 125,000 Cybertrucks. In terms of positive cash flow for the company, Musk also warned it would take at least a year to 18 months.

What does all of this mean for Tesla stock? Wedbush Securities analyst Dan Ives sees the Cybertruck launch as a key factor for the broader Tesla growth story over the coming years, creating a halo effect for Tesla as the EV truck market expands. As such, given there is still a 20% gap from its 52-week high of $299 to current levels of $238, I believe this is a great opportunity to buy Tesla stock given that the Cybertruck event, once a question mark, has come and gone.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Richard Saintvilus

After having spent 20 years in the IT industry serving in various roles from system administration to network engineer, Richard Saintvilus became a finance writer, covering the investor's view on the premise that everyone deserves a level playing field. His background as an engineer with strong analytical skills helps him provide actionable insights to investors. Saintvilus is a Warren Buffett disciple who bases his investment decisions on the quality of a company's management, its growth prospects, return on equity and other metrics, including price-to-earnings ratios. He employs conservative strategies to increase capital, while keeping a watchful eye on macro-economic events to mitigate downside risk. Saintvilus' work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets. You can follow him on Twitter at @Richard_STv.

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