The Tesla Cybertruck is on display at the Tesla Giga Texas manufacturing facility during the Cyber Rodeo grand opening party on April 7, 2022 in Austin, Texas. - Tesla welcomed throngs of electric car lovers to Texas on April 7 for a huge party inaugurating a gigafactory the size of 100 professional soccer fields. SUZANNE CORDIERO/BENZINGA
An analyst from Cathie Wood-led Ark Investment Management is positive on the demand for Tesla Inc‘s (NASDAQ:TSLA) upcoming Cybertruck.
Analyst Sam Korus said the Cybertruck could be as mainstream as Tesla’s Model Y. The Cybertruck has 1.5 million reservations and Google trends point to increased popularity, they noted.
“Low expectations for Tesla’s Cybertruck are based on a blind spot,” the analyst said.
The analyst noted that though the U.S. Energy Information Administration earlier forecast that long-range EVs would have little to no U.S. market share by 2040, it is now increasing its forecast each year. Korus disagreed with the EIA’s forecast that electric trucks will not account for more than 10% of the trucks sold in the U.S. by 2050.
It would be a “mistake” not to consider the implications Cybertruck’s success could have on traditional automakers, he added.
At Tesla’s annual shareholder meeting earlier this month, Elon Musk confirmed that the Cybertruck delivery event would take place later this year.
The CEO said he expects to sell 250,000-500,000 Cybertrucks every year once production is fully ramped up.
The Cybertruck is expected to compete in the electric vehicle (EV) in the truck market as it will compete with the Ford F-150 Lightning, the Rivian R1T, the Chevrolet Silverado EV, GMC Sierra EV, and the GMC HummerEV.
Tesla’s new model is taking a different approach in the design as it is using an aerodynamic approach.
“For most of us who have been covering Tesla for a decade now, this isn’t that surprising, and it is likely unsurprising for most Tesla customers too,” said Matthias Schmidt, an independent automotive analyst in Berlin.
Like Tesla’s other models that include the Model 3 and Y, the Cybertruck’s interior takes a minimalist approach with a screen and the steering wheel.
The price point for the Cybertruck is estimated to be anywhere between $50,000 to $70,000 via MSRP.
Last week, Tesla investor Sawyer Merritt drew parallels with Model Y’s success and said that the Cybertruck has the potential to exceed expectations in the long run, citing the appeal to non-traditional truck buyers and the fact that current truck buyers are often more focused on lifestyle than utility.
Produced in association with Benzinga
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