Cybertruck will play a huge role in Tesla's growth. After the launch of sales, the company's product line will expand to pickup trucks, which account for 20% of the automotive market. An analyst expects Tesla's 2024 sales to grow twice as fast as the consensus predicts.
The launch of the long-awaited Cybertruck later this year is expected to be a game-changer for Tesla. Gary Black, co-founder and managing partner of Future Fund, in a tweet highlighted the importance of the pickup truck to Tesla's overall growth. He pointed out that Cybertruck's entry into the market stimulates the overall sales of the manufacturer.
Black compares this potential growth to the launch of Model Y, which brought in new consumers. Even if they did not buy Model Y, they were interested in other Tesla car models. This is evident from the fact that “volume growth exploded in 2021,” Black pointed out. The analyst believes that Cybertruck will expand Tesla's overall addressable market and attract potential customers who may eventually purchase other Tesla models. He also pointed out that Cybertruck is in the pickup truck segment, which accounts for 20% of the automotive market, which means it has a huge consumer base.
“$TSLA shorts really don't get how important Cytruck will be to growing the entire TSLA franchise in 2024. I argued non-stop with $TSLAQ capos in 2020 that M-Y would grow the entire TSLA franchise while bringing in a whole new TAM ( CUVs). Of course TSLAQ disagreed, saying M-Y was just an oversized M-3. TSLA volume growth exploded in 2021 as the entire TSLA franchise caught fire. The same will happen in 2024 when Cytruck launches and expands TSLA TAM to pickups (20% of market). Potential customers will see the Cytruck in person or on social media and go to the TSLA website or store and buy another TSLA model even if they don't buy a Cytruck.”
$TSLA shorts really don’t get how important Cytruck will be to growing the entire TSLA franchise in 2024. I argued non-stop with $TSLAQ capos in 2020 that M-Y would grow the entire TSLA franchise while bringing in a whole new TAM (CUVs). Of course TSLAQ disagreed, saying M-Y was…— Gary Black (@garyblack00) July 3, 2023
Launching Cybertruck is very important. This will be the first new product for the general market since the launch of Model Y. The company launched its Tesla Semi truck in late 2022, but it is aimed at commercial customers. In addition, Cybertruck is a completely new and atypical vehicle. No doubt it will grab huge consumer attention and could be Tesla's next defining moment.
© 2023, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
Legal Disclaimer --
This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.