The Tesla Cybertruck has been a topic of raging online discourse since the brand recently shared that it has started building validation and certification release candidates at the Gigafactory Texas.
And as enthusiasts' necks crane towards Cybertruck news, some bold predictions are rushing in from a Wall Street veteran.
Investment firm Future Fund ETF’s co-founder Gary Black told CNBC yesterday that Tesla would sell its first electric pickup truck in droves because of how unique it is.
The former Goldman Sach’s Chief Information Officer shared that the truck would market itself when it’s on the road. He said:
It’s big, it’s bold and it’s gorgeous. And what you’ve got is 1.9 million pre-orders, that’s a huge number. This thing is going to start deliveries end of the third quarter, the base model is going to be priced right below $50,000 bucks and it’s going to start rolling across America like a rolling billboard.
It’s possible that many orders might not convert into actual sales. But it could draw people to Tesla’s website and create a halo effect – wherein consumers get elated about a product because they’ve had great experiences with the company's other offerings – as per Black. He added that:
It being out there will create a halo effect for the Tesla franchise, just like what happened when the Model Y came out.
He was also bullish about Tesla’s stock, stating that it could skyrocket next year because people are likely to remain excited about the Cybertruck:
You remember what happened to Tesla stock price in 2020, they were up seven-fold because everybody got excited about Model Y. Volumes went from 36 percent growth in 2020, to 86 percent in 2021. You’re going to see the same thing happen next year.
Moreover, he commented on the Cybertruck's potential buyer group, stating that younger people are likely to resonate more with it than the older generations:
Pickup truck lovers especially if they’re younger – 65-year-olds may not like it. But the 40 to 50-year-old pickup truck owners will love it. It’s different and powerful.
That said, the Cybertuck won’t cannibalize Tesla’s other vehicles because the brand has never been in the pickup truck business before, as per Black. Its low-volume production is expected to start later this year, and mass production would likely follow at the start of 2024. The waiting time for new Cybertruck orders is reportedly five years.