Tesla (NASDAQ: TSLA) fell over 6% on Friday, after unveiled its ‘Cyber Truck’. Despite the truck’s impressive features, including an all-electric battery, with range of 500 miles and a 0-60 mph time of as low as 2.9 seconds, the stainless steel, futuristic aesthetic clearly proved too much for most, with the car being labelled a niche product at best.
Tesla (NASDAQ: TSLA) shares fell over 6% on Friday, after the reveal of its ‘Cyber Truck’, with investors pointing to its niche exterior design. However, the shares rebounded after Tesla CEO Elon Musk announced 200,000 pre-orders in the first 48 hours. (Credit: Business Insider).
As a result, investors do not expect the truck to sell at Detroit pickup volumes, and the share price reflects this expectation. Furthermore, the launch did no marketing wonders with the “armored glass” windows accidentally shattered during a demonstration of its strength.
Over the weekend, Tesla’s CEO and co-founder Elon Musk tweeted that the pre-orders had reached 200,000 as of Sunday. Consequently, Tesla (NASDAQ: TSLA) shares rebounded, traded up as much as 5% early Monday. The pre-order numbers rival that of the Model 3 (released three years ago), which received 325,000 orders in the first week. However, analysts are pointing to the pre-order booking fee as a potential reason for the truck’s early success, which is only US$100 for the ‘Cyber Truck’, compared to US$1,000 for the Model 3.
The share price fall represents only a small dip in an overwhelmingly positive financial year so far, with the stock up over 56% already. Tesla Inc (NASDAQ: TSLA) is now trading at $336.34 per share and has a market capitalization of over $60b.
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