Cathie Wood's ARK Sees Tesla Cybertruck Being As Mainstream As Model Y: Low Expectations 'Based On Blind Spot'

An analyst from Cathie Wood-led Ark Investment Management is positive on the demand for Tesla Inc‘s TSLA upcoming Cybertruck.

What Happened: Analyst Sam Korus said the Cybertruck could be as mainstream as Tesla’s Model Y. The Cybertruck has 1.5 million reservations and Google trends point to increased popularity, they noted.

“Low expectations for Tesla’s Cybertruck are based on a blind spot,” the analyst said.

The analyst noted that though the U.S. Energy Information Administration earlier forecast that long-range EVs would have little to no U.S. market share by 2040, it is now increasing its forecast each year. Korus disagreed with the EIA’s forecast that electric trucks will not account for more than 10% of the trucks sold in the U.S. by 2050.

It would be a “mistake” not to consider the implications Cybertruck’s success could have on traditional automakers, he added.

Why It Matters: At Tesla's annual shareholder meeting earlier this month, Elon Musk confirmed that the Cybertruck delivery event would take place later this year. 

The CEO said he expects to sell 250,000-500,000 Cybertrucks every year once production is fully ramped up.

Last week, Tesla investor Sawyer Merritt drew parallels with Model Y’s success and said that the Cybertruck has the potential to exceed expectations in the long run, citing the appeal to non-traditional truck buyers and the fact that current truck buyers are often more focused on lifestyle than utility. 

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