Tesla Investor Tells Why 'Badass' Cybertruck Could Blow Away Demand Expectations

Tesla Inc‘s TSLA Cybertruck may blow expectations for demand in the long term, as per investor Sawyer Merritt.

What Happened: Merritt, a self-described Tesla fan and co-founder of sustainable lifestyle clothing startup TwinBirch, highlighted the challenge of gauging demand for the Cybertruck due to its distinct and unique design. 

Drawing parallels to the Model Y‘s success, Merritt pointed out that initial expectations were based on the luxury SUV segment, but many Honda CR-V and Toyota RAV4 owners ended up trading up for the Model Y, making it one of the best-selling SUVs globally. 

Merritt believes 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. 

Describing the Cybertruck as the “most badass/coolest truck yet,” Merritt predicts that it could achieve high volumes, especially considering the significant truck market in Southern California. 

Why It Matters: At Tesla’s annual shareholder meeting last week, Elon Musk confirmed that the Cybertruck delivery event would take place later this year. The CEO said that he expects to sell 250,000-500,000 Cybertrucks every year once production is fully ramped up.

“I’d say a quarter million a year is a reasonable guess and it might be 500,000, I don’t know. We’ll make as many as people want and can afford,” Musk had said.

Last year, Ford Motor Co‘s F F-series was the best-selling pickup truck in the U.S. Ford sold over 653,000 F-Series trucks, including 15,617 of the electric F-150 Lightning pickup.

In a February tweet, Musk said that handling demand for the Cybertruck won’t be an issue, but "ramping production" will likely be a challenge.

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