Will Cybertruck drive the Tesla share price forward?
Despite the windows of Tesla’s new Cybertruck shattering during a demonstration designed to showcase their durability, it didn’t stop people rushing to order Elon Musk’s latest vehicle.
Tesla CEO Elon Musk unveiled the company’s new $39,900 pickup truck dubbed the Cybertruck last week, only to have its ‘Armour Glass’ smash during a demo designed to show off its durability.
But despite the mishap, Tesla still received almost 150,000 pre-orders for the futuristic looking truck over the weekend.
‘146k Cybertruck orders so far, with 42% choosing dual, 41% tri & 17% single motor,’ Musk tweeted on Saturday.
Musk took to Twitter again on Wednesday to announce that orders for the Cybertruck have since reached over 250,000.
The news helped Tesla shares rebound after the botched demo, with the stock climbing more than 3% on Monday. If interest in the Cybertruck continues to swell, it could help push Tesla’s shares higher in the coming weeks.
Tesla shares up 11% since Q3 results
Despite the electric carmaker reporting a decline in both revenues and profits in its third quarter results in October, down 8% and 34% respectively, Tesla's share price is up 11% since the trading update.
However, it is worth nothing that profits for the quarter hit $342 million, well ahead of analysts’ forecasts, with Tesla generating $371 million of free cash.
‘A couple of quarters in the back at the end of 2018 gave way to a pretty ugly start to 2019, and the group raised another $2.4bn from the market to keep things ticking over,’ analysts at Hargreaves Lansdown said.
‘Investors will hope the most recent quarter's profits will be the new norm, but we're going to wait for a few repeat performances before we turn more upbeat.’
Analysts believe Tesla’s stock is overvalued
The 29 analysts offering 12-month price forecasts for Tesla have a median target of $290, with a high estimate of $949 and a low estimate of $160, according to CNN Business.
With Tesla trading at $332.90 as of 15:45 GMT on Wednesday, the median estimate indicates a potential downside of -12.8% for the stock.
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