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Tesla Cybertruck in Demand as Pre-Orders Top 650K, Wedbush Estimates

Published 06/22/2020, 04:43 PM
Updated 06/22/2020, 05:03 PM
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By Yasin Ebrahim

Investing.com - Tesla is not expected to start production of its Cybertruck until late-2021, but early signs of strong demand for the company's electric pickup are already beginning to emerge, according to Wedbush Securities analyst Dan Ives.

Tesla (NASDAQ:TSLA) ended the day down 0.66%, and was largely flat in after-market hours.

"We estimate that pre-order levels are staggering coming out of the gates since announced last year and currently stand north of 650,000 based on our estimate with momentum," Ives said. Ford Motor Company (NYSE:F), the leader in the pick-up truck market, sells roughly 1 million F-150 pickups per year.

The initial Cybertruck will be sold in three models: a single motor version with battery range of 250+ miles (base model), a dual motor version with a battery version of 300+ miles starting at $49,900 and a trifecta-motor version with a range of 500+ miles which starts at $69,900, Ives added.

In a sign of sufficient demand for its Cybertrack, Tesla would need to meet the 175,000-to-200,000 unit threshold in its first full year of deliveries, which will likely be 2022, the firm added.

Given the strong level of initial demand, however, investor focus will shift to which location Tesla will choose for its Cybertruck production, Ives added. Austin, Texas, is likely the front runner, though Tulsa, Oklahoma, is also in the running.

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