Tesla's Cybertruck Demand Weakens as SpaceX Purchases Over 1000 Units
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: stocktwits
- Employee Reward: Tesla CEO Elon Musk promised a Cybertruck to an xAI employee if they completed a GPU training run within 24 hours, resulting in the employee receiving a model starting at approximately $79,990, highlighting the company's focus on employee incentives.
- Declining Demand: Despite Musk's prediction of 500,000 annual Cybertruck sales, Tesla's total sales of premium models in 2024 reached only 85,133 units, indicating that Cybertruck's annual sales may fall below 30,000 units, reflecting weaker-than-expected market demand.
- Supply Contract Reduction: Tesla's South Korean supplier L&F Co. slashed its supply contract from 3.83 trillion won to 9.73 billion won, attributed in part to delays in Cybertruck development and low consumer demand, which affected the supply of battery materials.
- Market Reaction: Although the Cybertruck began deliveries in November 2023, its price exceeding initial expectations from 2019 has deterred reservation holders from placing orders, compounded by mixed opinions on its design impacting consumer purchasing decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 384.14 USD with a low forecast of 19.05 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
14 Buy
10 Hold
10 Sell
Hold
Current: 438.570
Low
19.05
Averages
384.14
High
600.00
Current: 438.570
Low
19.05
Averages
384.14
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
