The Arrival of Tesla's Cybertruck

Tesla showcased its highly anticipated Cybertruck at a special event in Austin, Texas, where the first batch of these groundbreaking pickup trucks was delivered to customers. The event was live-streamed, allowing investors, Wall Street analysts, and potential truck buyers to compare the specifications of various electric trucks currently available in the U.S. market.

The Price Factor

One crucial aspect that stands out is the cost. Starting at a price above $60,000, some have deemed the Cybertruck as a little "pricey." Gary Black, co-founder of Future Fund Active ETF and a Tesla shareholder, had hoped that the truck would have been priced closer to the F-150 Lightning, which starts around $50,000. However, Wedbush analyst Dan Ives mentioned that the pricing was generally in line with his expectations and didn't come as a surprise.

A Look at the Competition

In terms of pricing, the Cybertruck ranges from about $60,000 to $100,000 for different trims. While Rivian Automotive's R1T presents itself as a higher-end option, it maxes out at approximately $90,000. On the other hand, Ford's F-150 Lightning covers a wider price range, with trucks ranging from about $50,000 to over $90,000. In addition to these options, General Motors is set to release its all-electric Silverado, but initial deliveries will be limited to fleet customers.

For those seeking the utmost luxury and performance, there is the "Cyberbeast" trim of the Cybertruck, starting at around $100,000. This places it firmly within the realm of a luxury performance truck, as noted by Ben Rose from Battle Road Research. However, it's worth mentioning that the lower-priced version of the Cybertruck won't be available until 2025. Despite this, Tesla has already received over 1 million pre-orders for the truck, according to CEO Elon Musk, and the company will initially focus on producing the higher-priced models. The all-wheel drive version, with a starting price of $80,000, is slated to be available in 2024.

Analyzing Range

When it comes to the range, the Cybertruck holds its ground, offering a maximum range of 350 miles for any version, as stated on Tesla's website. However, competitors like Rivian and GM have trucks with even greater ranges, surpassing 400 miles per charge.

As the Cybertruck enters the market, it is poised to make a significant impact with its unique design and impressive features. The industry awaits further developments as customers begin to experience the future of electric pickup trucks.

Range and Electric Trucks

One of the key factors to consider when it comes to trucks is their range. Towing puts a strain on the range of a vehicle, which is why electric trucks have a higher range per charge compared to sedans or crossover vehicles.

Managing range can be a challenge for auto makers. Although increasing the battery pack size may seem like a solution, there are diminishing returns. As the battery pack gets larger, it becomes heavier and some of the added energy is used to drag it around. Additionally, batteries are the most expensive component of an electric vehicle, which means that increasing the range can eat into profits.

Despite these challenges, the Cybertruck offers plenty of appealing features. Similar to an F-150, it can power a home and it boasts impressive speed. The Cyberbeast can go from zero to 60 miles per hour in under three seconds.

In Thursday's trading, Tesla stock finished down 1.8%. In premarket trading on Friday, it dropped another 2%, while S&P 500 and Nasdaq Composite futures remained flat.

A decline in stock price following a major event like the Cybertruck delivery event is not surprising. The stock market is forward-looking, and investors often follow the pattern of "buy the rumor and sell the news".

Interestingly, Tesla stock had been on an upward trend throughout the week leading up to Thursday's trading. As of Friday, shares are priced at around $235 per share, which is roughly where they began the week. This aligns with the fact that investors were already aware of the impending release of the Cybertruck and had a good understanding of its capabilities.

Ultimately, the success of the Cybertruck will have an impact on Tesla's stock in the long run. According to Wall Street expectations, approximately 1,500 units will be delivered in 2023, followed by about 78,000 in 2024. To provide context, it is estimated that Tesla will deliver a total of 1.8 million units across all models in 2023, and 2.2 million in 2024.