Tesla Stock Rises Following News of First Cybertruck Produced

Tesla announced the production of its first Cybertruck at Gigafactory Texas on Saturday, and the company’s shares subsequently rose during Monday trading. The news marks the automaker’s first new vehicle launch since the Model Y hit the market in 2020, and it also represents Tesla’s entry into the competitive U.S. truck market.

Above: Models of the Tesla Cybertruck (Image: Casey Murphy / EVANNEX).

Shares in Tesla rose on Monday following news of the first Cybertruck being produced, while Rivian stock dropped (via Barron’s). The Tesla Cybertruck, set to begin deliveries later this year, is expected to compete directly with the Rivian R1T truck and others such as the Ford F-150 Lightning, and an upcoming electric Chevy Silverado from GM.

Barron’s also points out that Ford’s Monday announcement to cut prices on the F-150 Lightning moved automaker stocks after early morning trading saw little movement from each brand.

Above: Tesla stock boosted on production of first Cybertruck in Texas Gigafactory (Video: Yahoo Finance / YouTube).

At the time of writing during Monday trading hours, Tesla shares were up around 2.13 percent floating just under $290. Comparatively, Rivian shares were down about 4.19 percent ($23.78), Ford shares were down roughly 5.07 percent ($14.22), and GM shares were down about 3.31 percent ($38.67).

The news also comes ahead of Tesla’s second-quarter earnings call, scheduled to happen this Wednesday. The call has been highly discussed on Wall Street, after Tesla beat average delivery expectations for the second quarter in a report shared a few weeks ago. The effects of price cuts on profit margins will take center stage for many analysts.

“This should be the low point of auto margin but commentary about future price cuts versus benefits to margin will be key,” Baird analyst Ben Kallo wrote on Monday. “Margin tailwinds should trump additional price adjustments.”

Kallo has a Buy rating on Tesla stock, and on Monday he raised his price target on the company’s shares to $300 from $252.

As Barron’s also notes, one Cybertruck being produced also won’t hold the stock up for long. Most analysts forecast around 10,000 Cybertruck deliveries throughout 2023, but it’s tough to predict. In any case, Model Y production totaled to roughly 80,000 in the vehicles first three quarters, so it’s certainly not out of the realm of possibility.

Tesla shares have jumped nearly 130 percent this year, and around 70 percent since the automaker’s stock dipped following earnings. Factors relating to the rise include the company’s recent Supercharging partnerships, outpacing delivery expectations, price cuts and the incoming Cybertruck.

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