Tesla Up 1% Despite Cybertruck's Botched Launch

Tesla clawed back some of last week's losses on Monday.

Despite an embarrassing debut of the cybertruck last week, which saw shares in the stock drop 6%, orders for the electronic pick up truck are through 200,000.

The bulletproof armoured glass of the electric pickup truck smashed during a botched launch last Thursday. Yet despite the onstage performance doing little to inspire confidence, the disastrous PR stunt hasn’t completely put off customers.

Without any advertising or paid endorsements orders for the truck are strong and rising. Elon Musk’s tweets updating on order numbers is doing some heavy lifting for the stock, pulling it back from a 10-day low. Obviously, he doesn’t mention that it is just a $100 refundable deposit to order, down from the $1000 deposit for the Model 3.

Like it or loathe it, the cybertruck along with the coming Model Y crossover SUV will see Tesla addressing categories of the automobile market, that it previously couldn’t. 
Whilst the Tesla share price hit a low of $330 following the launch, its still up a solid 6.8% on the month and booked gains of 1% in the previous session. The stock is trading higher once again in the pre-market today.

Whilst the cybertruck grabbed our attention and achieved orders from hardcore Tesla fans, it is unlikely to win over a wider audience. However, Tesla is also performing a quiet revolution in China. Last Friday the made in China Model 3 was made available in Tesla stores across China. The number of Tesla service centres is being upped from 29 to 63, whilst fast charging stations are being increased from 39 to 362 indicating the ramp up in orders expected.
Tesla shares have been in demand since reporting quarterly profits following $1 billion loss in the first half of the year. The stock is up over 35% so far this quarter.

Wall Street analysts opinions on Tesla remain firmly divided. According to FactSet, of 33 analysts, 13 consider Tesla a buy, 9 a hold and 11 have given it a sell rating. The average target price was $319 representing a 15% downside from its current price.

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.