Tesla shares soared as the electric vehicle (EV) giant is set to start deliveries of its Cybertruck after four years of delays and production challenges.
The US carmaker’s stock closed 4.51% higher at $246.72 on Tuesday. The shares increased by 1.06% in the after-hours session to $249.33 per share.
Tesla’s first Cybertruck delivery, a notable milestone since the vehicle’s introduction in November 2019, will occur at the Texas Gigafactory at 3 pm. The anticipated event has caught shareholder attention, as seen by the high lottery entries for attendance.
The Cybertruck, known for its futuristic ‘Blade Runner’-inspired design and unforgettable window-shattering incident during its unveiling, has garnered significant consumer interest.
More than a quarter-million reservations came in within days of its reveal, but the late 2021 delivery plans have been postponed. While the production schedule encountered delays, shares in Tesla remained resilient, increasing by 125% in its year-to-date performance.
CEO Elon Musk has eased initial production expectations but is ambitiously aiming for a quarter-million annual production of the Cybertruck by mid-decade.
That target aligns with Tesla’s strategy to rival market frontrunners like Ford’s F-Series and Rivian’s electric trucks. Tesla has reportedly received over one million Cybertruck pre-orders, signaling substantial market demand.
The industry and consumers are closely monitoring Tesla’s upcoming Cybertruck launch to see whether the vehicle can redefine the EV market.
Tesla’s Challenges with Cybertruck’s Production
Musk disclosed to investors in an earnings call in September that Tesla was facing ‘enormous challenges’ in increasing Cybertruck production.
In a prior earnings call, the Tesla CEO said the company made a risky decision to develop the Cybertruck.
According to Musk, the Cybertruck’s delivery has been pushed back due to the vehicle’s innovative features.
The Texas-based EV giant ultimately plans to manufacture 250,000 Cybertrucks annually, with Musk expecting to reach the production target by 2025.
Analysts estimate that Tesla will sell 78,000 units by 2024 and 165,000 units by 2025. That compared with Ford’s 653,957 units of the F-series pickup sold in 2022, falling from its 2021 sales of 726,004 units.
