The Tesla stock price is possible to go up more after the release of the Cyber track. Hundreds of thousands of prospective car purchasers are currently lined up in anticipation of the release of the Tesla pickup truck, the Cybertruck; however, they will need to continue waiting in line.
According to a report that was published on Tuesday by Reuters, citing two people with knowledge of the subject, Tesla (NASDAQ:TSLA) expects to begin “mass production” of its Cybertruck by the end of 2023. If what Reuters is reporting is accurate, then that is disappointing news for buyers and investors to consider. Since Tesla first unveiled the truck before the end of 2019, many customers have been patiently waiting.
A request for the company’s comment was disregarded by the organization.
As said at the company’s earnings conference call for the third quarter of 2018, everyone anticipates that Cybertruck will hit the roads in the year 2023. Elon Musk, the CEO of Cybertruck, stated that “we’re in the final lap for Cybertruck.” “We are creating a Cybertruck line here at Giga Texas Austin,” the new facility that the corporation has opened in the state of Texas.
Later on during the call, Drew Baglino, senior vice president of powertrain and energy engineering, stated, “we’re still on pace to start early production in the middle of next year.”
It seems reasonable to assume that “early manufacturing” will begin in the middle of the year, and that “mass production” will not begin until the end of 2023. It will always take some time before a new product can be brought into full production.
Wall Street anticipates that approximately 83,000 Cybertrucks will be given to consumers in the year 2023, and an additional 120,000 will be handed over to customers in the year 2024; nevertheless, Musk’s ambition is to sell approximately 250,000 of the pickups per year. If large numbers aren’t coming off the assembly line until the end of the next year, the figure for 2023 will be a very optimistic projection at best.
That poses a potential challenge for Tesla in 2023 with regard to the overall growth of the company, albeit not a significant one. Wall Street anticipates that Tesla will ship approximately 2.1 million units during the course of the following year. The contribution of Cybertruck to that overall sum is only about 4%. Deliveries of Model 3 sedans account for 34% of the overall statistic, while deliveries of Model Y sedans account for 58% of the whole figure.
It’s possible that the comparatively low proportion for 2023 is the reason investors don’t appear to be overly concerned about the Cybertruck report. During early trading on Tuesday, shares of Tesla (Tesla stock) were up 3.8%, while the S&P 500 SPX –0.47% and the Dow Jones Industrial Average DJIA –0.37% had risen 0.9% and 0.6%, respectively.
Following news that the Chinese government is mulling over whether or not to continue imposing certain restrictions on Covid-19, shares of Tesla and other Chinese electric vehicle manufacturers have risen. For example, NIO (NIO) shares climbed 4.7% in the early going of trading today.
If there were less regulations, manufacturing and selling automobiles in China would be made much simpler. The most productive facility for Tesla is located in Shanghai, which also happens to be the location where the business made more than 25 percent of its sales in 2021.
It’s possible that Tesla’s news has an adverse effect on consumers more than it does on investors. People have paid $100 each to reserve the stainless-steel truck that comes with bulletproof glass, and there have been hundreds of thousands of people who have done this. The majority of those reservations were made in the year 2020. According to the present schedule, some customers at the rear of the order queue may not obtain their vehicles until 2026, which would amount to a wait time of six years.
Featured Image- Megapixl @ Colour59
Author Valerie Remorosa 
