Tesla Up 1% Despite Cybertruck's Botched Launch

Published 26/11/2019, 11:56

Despite an embarrassing debut of the cybertruck last week, which saw shares in the stock drop 6%, orders for the electronic pick up truck are through 200,000.

The bulletproof armoured glass of the electric pickup truck smashed during a botched launch last Thursday. Yet despite the onstage performance doing little to inspire confidence, the disastrous PR stunt hasn’t completely put off customers.

Without any advertising or paid endorsements orders for the truck are strong and rising. Elon Musk’s tweets updating on order numbers is doing some heavy lifting for the stock, pulling it back from a 10-day low. Obviously, he doesn’t mention that it is just a $100 refundable deposit to order, down from the $1000 deposit for the Model 3.

Like it or loathe it, the cybertruck along with the coming Model Y crossover SUV will see Tesla addressing categories of the automobile market, that it previously couldn’t.
Whilst the Tesla share price hit a low of $330 following the launch, its still up a solid 6.8% on the month and booked gains of 1% in the previous session. The stock is trading higher once again in the pre-market today.

China

Whilst the cybertruck grabbed our attention and achieved orders from hardcore Tesla fans, it is unlikely to win over a wider audience. However, Tesla is also performing a quiet revolution in China. Last Friday the made in China Model 3 was made available in Tesla stores across China. The number of Tesla service centres is being upped from 29 to 63, whilst fast charging stations are being increased from 39 to 362 indicating the ramp up in orders expected.

Tesla shares have been in demand since reporting quarterly profits following $1 billion loss in the first half of the year. The stock is up over 35% so far this quarter.

Ratings?

Wall Street analysts opinions on Tesla remain firmly divided. According to FactSet, of 33 analysts, 13 consider Tesla a buy, 9 a hold and 11 have given it a sell rating. The average target price was $319 representing a 15% downside from its current price.

Tesla Inc Daily Chart

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