Cybertruck Could Boost Revenue, Says Big Tesla Investor

Elon Musk, CEO of Tesla, has recently made several assurances regarding the production of the long-awaited Cybertruck and the replacement of Twitter's chief executive.

 

Investors will likely have to wait until Tesla's Investor Day in March before learning more about Musk's sales-boosting strategy for the electric vehicle manufacturer.

Gary Black, a Tesla bull and investor, believes that Tesla (TSLA) - Get Free Report will begin delivering Cybertrucks in late 2023 and projects 10,000 truck deliveries as part of his overall 1.9 million delivery forecast for 2023.

 

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Musk has stated that Cybertruck production could be completed and trucks could be sold to consumers by the middle or end of 2023.

 

In June, Tesla's factory in Austin, Texas will finally begin production after years of anticipation. According to Chief Vehicle Designer Franz von Holzhausen, everything is on track. The Cybertruck's features have just been revealed, and he promises big surprises.

 

Von Holzhausen assures Cybertruck enthusiasts that the design has been finalised. He was asked on the Ride the Lightning podcast with Ryan McCaffrey, "Is the Cybertruck's design complete?"

 

The episode aired on January 15th. He replied, "Yes," but added that the pencil is not completely lowered.

 

Musk unveiled the electric pickup prototype at a Los Angeles promotional event in November 2019. The Tesla Cybertruck boasts an electric range of up to 500 miles, a maximum towing capacity of 14,000 pounds, and a starting price of less than $40,000.

Musk announced on November 24, 2019, that Tesla had received at least 187,000 orders for the Cybertruck within five days of the vehicle's debut.

 

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Tesla Seeking New Chief Executive Officer

 

Since Musk's $44 billion acquisition of Twitter, he has focused on growing the social media company's revenue.

 

However, Tesla investors want the billionaire to concentrate on increasing sales for the electric vehicle company. Musk stated in 2022 that he would resign as CEO of Twitter once he found a successor.

 

As of January 17, Tesla comprises 9.2% of Black's Future Fund Active ETF FFND. According to him, the EV manufacturer had a terrible fourth quarter due to "noise" on Twitter and the impact of lower production output from its Chinese factory.

 

Black stated, "I would like to know when he will announce a CEO for Twitter."

 

Future Fund ETF, which was established in August 2021, purchased additional Tesla shares at $105 per share last week, but Black did not disclose the total number of shares.

 

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Despite concerns that Musk focused solely on Twitter after taking the company private in October, he stated that Tesla's brand has not "taken a hit."

 

Black stated that when Tesla's popularity declined, Musk stopped tweeting conservative stances.

 

"Elon is an intelligent man who has learned to refrain from tweeting more conservative views," he said. "You don't want your right-leaning views to negatively affect your brand, especially if your customer base is disproportionately comprised of climate-friendly Democrats. It irritates them."

 

The No. 2 Executive at Tesla Has a Huge Job.

According to Reuters, Tesla's China chief executive Tom Zhu was promoted to oversee the electric vehicle manufacturer's U.S. production plants and sales operations in Europe and North America.

 

Black stated that Zhu is highly regarded and has built a successful business in China. It will be fascinating to observe his management of the U.S. business.

 

Musk slashed the prices of Tesla's two flagship models, the Model 3 sedan and the Model Y SUV, which account for 95 percent of the company's 2022 deliveries.

 

The price reductions range from 6% to 20%, and two models are eligible for the new $7,500 federal tax credit in the United States.

 

Black stated that price reductions were necessary despite their impact on profit margins in the short term.

 

"They had to take action.to increase volume," he stated. "It is difficult to say whether they were excessive. They must have done it."

 

Black stated that Zhu was "responsible" for the price cuts in the United States and China.

 

The fact that Zhu is Tesla's second most prominent executive is advantageous for the company.

 

He stated, "His track record speaks for itself, assuming he can replicate it in the United States."

 

Musk should concentrate his efforts on Tesla since its stock price fell by 65 percent in the past year.

 

"We don't want Elon to go anywhere," said Black. "He brought the company to its current state. We desire that he remain."

 

Black and numerous other investors want Musk to use the cash hoard accumulated by Tesla to repurchase company shares.

 

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According to FactSet, Tesla generated $9 billion in free cash flow in 2022.

 

According to Black, whose 12-month price target is $370, data demonstrating that Tesla's brand was not harmed by the Twitter deal could increase the company's valuation.

 

Sales would increase if Tesla clarified whether it will construct Gigafactories in countries such as or Mexico.

 

"If they want to sell 10 million vehicles annually by 2030, they will need 10 Gigafactories that produce 1 million vehicles each," he said, given that the Fremont plant produces only 600,000 per year and the factories in Berlin and Austin produce 250,000 each.

 

He stated that Tesla's Megapacks or battery storage units could generate an additional $2 billion in annual profit if 5,000 units were sold at 50 cents per share.

 

Megapacks manufactured in Lathrop, California, came online during the third quarter and are intended for sale to utilities.

 

The investor added, "Elon is a long-range thinker."

 

Black, managing partner at Future Fund, stated that he would "love to see the board respond to what has happened to the stock" due to Tesla's long-term growth concerns.

 

He stated that the board must "develop a more realistic growth rate, such as 35%, rather than 50%."

 

In order for Tesla to reach a $3 trillion valuation by 2030, the board of directors should "recognise" that the company is now facing demand restraint more than supply constraint and should prioritise advertising and public relations.

 

"They must acknowledge that the world has changed and abandon this mentality," he said.

 

Tesla has relied on word-of-mouth to sell cars, as opposed to a large advertising budget like its competitors. The company lacks a PR department to respond to media inquiries.

 

As "full-self driving becomes more prevalent," the company should also focus on increasing education about the safety of Tesla's vehicles, as this could increase brand equity. They could perform better.

 

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