Tesla Commences Production of Highly Anticipated Cybertruck at Gigafactory in Texas

Tesla Commences Production of Cybertruck Electric Pickup at Gigafactory in Austin

Austin, Texas – Tesla (NASDAQ:TSLA) has officially begun production of its highly anticipated Cybertruck electric pickup at its Gigafactory in Austin, Texas. The announcement was made via the company’s Twitter account on Saturday. This development is significant, coming just ahead of Tesla’s second-quarter earnings report, set to be released on July 19th. Investors are eagerly awaiting further details on the specifications and production of the Cybertruck during the earnings call.

The Cybertruck, which was unveiled by Tesla CEO Elon Musk in late 2019, has generated considerable excitement. However, the initial production of the vehicle faced several delays due to component sourcing issues. Musk revealed during the Q1 earnings call in April 2023 that the company was still building “Alpha versions” of the Cybertruck on its pilot line for testing purposes. He also expressed plans to host a “great delivery event” in the third quarter.

Tesla’s Cybertruck enters a growing market of electric pickups, with competitors like Ford’s F-150 Lightning, Rivian’s R1T, and General Motors’ Chevrolet Silverado EV and GMC Hummer. Despite the increasing competition, Tesla remains a strong player in the electric vehicle market.

Wall Street’s sentiment regarding Tesla stock is currently neutral, with a Hold consensus rating based on 12 Buys, 13 Holds, and five Sells. The average price target of $237.50 suggests a possible downside of 15.6%. Despite this, Tesla’s shares have seen remarkable growth, rallying over 128% year-to-date.

Citigroup analyst Itay Michaeli recently expressed a cautious outlook for Tesla’s Q2 results. He emphasized that the stock’s stretched valuation could make it vulnerable to disappointing numbers or lower-than-expected margins. However, Michaeli also noted that the consensus estimates for the year appear reasonable. Moreover, Tesla’s impressive Q2 delivery report presents an opportunity for an upward guidance revision. Accordingly, Michaeli raised his price target for Tesla to $278 from $215 but maintained a Hold rating.

As Tesla makes strides in producing the Cybertruck and prepares to report its second-quarter earnings, the company continues to capture the attention of investors and EV enthusiasts alike. The future success of the Cybertruck, coupled with ongoing industry developments, will undoubtedly shape the trajectory of Tesla and the electric vehicle market as a whole.