Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla, Inc. (NASDAQ:TSLA) is nearing the commercial launch of its much-awaited Cybertruck and rumors abound regarding the specifications and the pricing.
Tesla investor and Future Fund Managing Partner Gary Black shared his expectations concerning the electric pickup truck.
What Happened: Black said he expects three variants of the Cybertruck to roll out when Tesla launches it later this year.
| Range | 0-60 miles/hour acceleration | Pricing | |
| Single-motor variant | 250 miles | 6.5 seconds | $49,900 |
| Dual-motor variant | 300 miles | 4.5 seconds | $59,900 |
| Quad-motor variant | 400 miles | 2.9 seconds | $79,900 |
The estimated pricing will keep the vehicle under the IRA cap for pickups, the fund manager said.
“My guess is they start with quad motor delivs [sic] first since initial start-up costs will be high, then go to dual motor, then single motor,” Black said.
Why It’s Important: Ford Motor Co‘s (NYSE:F) F-150 Lightning lineup begins with the base trim, known as the F-150 Lightning Pro. It boasts dual motors and starts at $49,995, offering an EPA range of 240 miles. It was initially priced at $59,974 but shortly after Tesla confirmed the production of its first Cybertruck, Ford reduced it by roughly $10,000.
On the other end of the spectrum, the top-tier F-150 Lightning Platinum kicks off at $91,995.
Black is among the analysts who are uber-bullish on the Cybertruck. He sees Tesla’s 2024 volume estimates to move sharply higher, thanks to the Cybertruck launch along with the Model 3 refresh and full self-driving V12 L4 coming to fruition. Volume growth will begin to accelerate in the fourth quarter, the fund manager said.
“Today analysts are forecasting FY'24 volume growth of just +27% (after +40% growth in FY'23) which seems absurdly low with three major volume catalysts on the horizon,” he added.
Black sees a similar scenario as what happened when the Model Y was launched in 2020 and lifted Tesla’s volume growth from 36% in 2020 to 87% in 2021.
“There will be a huge halo effect that ignites the entire $TSLA franchise by interest generated from Cytruck and M-3 Refresh,” he said.
The fund manager said he has high conviction based on what happened with the Model Y in 2021. “How can the first $TSLA pickup with 2M pre-orders be a flop?? CT will be a huge hit,” he said.
Tesla shares closed Wednesday’s session down 1.78% at $251.92, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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