Tesla Inc‘s TSLA highly anticipated Cybertruck launch later this year is expected to be a game-changer for the electric vehicle giant. Gary Black, the co-founder and Managing Partner of Future Fund, took to Twitter to emphasize the significance of the Cybertruck for Tesla’s overall growth.
Black’s Theory: Comparing it to the Model Y launch, Black believes that the Cybertruck will expand Tesla’s total addressable market (TAM) and attract potential customers who may end up purchasing other Tesla models.
“Tesla shorts really don't get how important Cybertruck will be to growing the entire TSLA franchise in 2024,” Black said in a tweet.
With pickups accounting for 20% of the auto market, Black predicts a substantial increase in Tesla’s TAM.
"Potential customers will see the Cytruck in person or on social media and go to the TSLA website or store and buy another TSLA model even if they don't buy a Cytruck," Black said.
Contrary to the Street’s volume forecast, he anticipates a remarkable 53% surge in volume for Tesla in 2024.
See Also: Best Electric Vehicle Stocks
Why It's Important: The Cybertruck launch is crucial for Tesla, as it marks the company’s first major new product since the Model Y, and fans see it as a defining moment, similar to the iPhone’s impact.
The company did launch its Tesla Semi truck in late-2022 but that targets commercial customers.
While Tesla reported record deliveries for the second quarter, critics argue that the volume gain came at the expense of margins.
Tesla closed Monday's truncated session up 6.90% at $279.82, according to Benzinga Pro data.
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