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Tesla To Go Up On Electric Pickup Truck

Published 12/28/2017, 10:02 AM
Updated 03/09/2019, 08:30 AM
TSLA
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Despite the recent decline of Tesla shares, the stock of the American electric automobile manufacturing company is expected to rally in the coming sessions following a confirmation from Tesla Inc. (NASDAQ:TSLA) Chief Executive officer Elon Musk regarding the plans of the company to build a fully electric pickup truck following the production of the Model 3 & electric vehicle in the market.

Elon Musk announced through his Twitter account and promised that the company would produce the pickup truck shortly after the Model Y. Musk also added in his tweet that the core design as well as the engineering elements has been under the thoughts of the Tesla founder and stated his desire to build the pickup truck.

Musk has also previously hinted his pickup truck plans back in November when he revealed the first Tesla Semi truck to the public. In the middle of investor concerns regarding the inability of the company to meet its own targets for the production and delivery of the mass-market Model 3 vehicle a couple of months ago, the outlook for the company’s Semi truck as well as the overwhelming pre-order and reservations it has received shortly after its reveal has provided a slightly more positive outlook for the company’s performance in the coming year.

On the other hand, the Model Y which has been mentioned by Musk over the past year would be a built through a substantial carryover from the Model 3 which would allow the company to deliver it to the market at a much faster rate.

Upcoming Tesla Delivery Numbers

While Tesla shares have been on a rally this year mainly due to upbeat investor expectations regarding the deliveries and overall production of the Model 3 vehicle, the company’s shares slumped after the company posted last October that the production of its much-awaited Model 3 vehicle has faced bottlenecks and has warned on the company not being able to meet its own delivery numbers for the last quarter of the year.

While the company has been known to missed targets and analysts expectations in the past, Tesla missed its own forecasted numbers this time leading into doubts for Tesla investors who have been holding back on selling on Tesla despite its continuously growing cash spending and massive cash burn.

For the whole year, Tesla expected a delivery of 100,00 vehicles comprised of both the Model S and Model X vehicle which would represent around 27,000 deliveries for the fourth quarter. Although some has already expressed full doubt son the company’s ability to increase production on a monthly basis, Tesla was able to show a couple of signs of an improving production in terms of the Model 3 beginning with the delivery of the vehicles to non-employee customers as well as a sighting of hundreds of Model 3 units in a number of Tesla delivery centers in California.

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