Benzinga - The Cybertruck buzz is getting louder as its launch date approaches. An analyst, who is very bullish about Tesla Inc.'s next big product has already begun to think aloud about the next iterations of the much-awaited electric pick-up truck.
What Happened: Future Fund managing partner Gary Black said Tesla should consider launching a traditional-looking pickup for those who love pickups but want a more mainstream look, preferably at a lower price point.
The difference could be something like the Model X and Model Y, the analyst said.
Black was responding to a tweet by a Tesla investor and influencer who raised the possibility of some buyers preferring their pickup to the Cybertruck.
When a Twitter user said Tesla is confident of its own design language and brand name and people will gradually warm up to it, Black differed with the view.
“Why not make products that appeal to different consumer segments?” he asked
“Two distinctly different pickups for a segment that buys 16M units [a] year and may differentiate on price is realistic.”
When Tesla CEO Elon Musk shared a picture of him driving around in a Cybertruck, Black said he loved the design and has ordered a tri-motor Cybertruck.
He also noted that many pickup truck owners want a more traditional truck, as is evident from Rivian Automotive Holding Inc.’s success with its R1 pickup truck. Some customers may also prefer something smaller or at a lower price point, he added.
“I'm just suggesting Tesla pursue more market segmentation in trucks (20% of TAM) once CT ramps, as TSLA did with Model Y in SUVs and Model 3 in sedans, so $TSLA can get closer to 10M/year units by 2030 vs WS ests of 6.5M/year,” Black said.
I personally love the CT design and have a tri-motor CT on order. But there are many pickup truck owners who want a more traditional truck (note Rivian's success), or want something smaller or at a lower price point. I'm just suggesting Tesla pursue more market segmentation in… pic.twitter.com/XxzMempLUP— Gary Black (@garyblack00) July 10, 2023
Why It's Important: Cybertruck is seen as a game-changer, as it is expected to draw in customers with its design appeal, power efficiency, and utility.
The U.S. pickup truck market is dominated by Ford Motor (NYSE:F)'s F-series, General Motor Corp.-owned Chevy Silverado and Ram.
Ford's F-series ranked first in terms of sales in 2022, as 653,957 units were sold compared to Chevy Silverado and Ram's sales of 513,354 units and 468,344 units, respectively.
Ford's electrified version of its F-150 has been in the market for more than a year now although it has not gained much traction.
Price Action: Tesla closed Friday’s session at $274.43, down 0.76%, according to Benzinga Pro data.
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