As you well know, we cover Tesla (TSLA) quite extensively…
Some may say even too much! And they wouldn’t be wrong – not a day passes that the stock doesn’t get mentioned in The Octagon or in The Workshop.
Annoying as it may be, it’s our job – we have to keep up to date with what’s happening with major market movers, and TSLA is surely one of them.
Yet, there’s one MAJOR area of the company that has gotten virtually no airtime by us, or seemingly anyone else, recently.
Cybertruck Delayed Until 2023???
Elon Musk is no ordinary man, so it’s only fair that the pick-up truck he’s trying to mass-produce would be anything but ordinary:
(Source: Tesla.com)
When first unveiled, back in late 2019, the prototype did exactly what Tesla does best… made people talk about it!
Say what you will about the design, but the consumer has spoken – Tesla announced pre-orders for 250,000 trucks in the 4 days that followed.
Unfortunately for the company, things have gone downhill from there…
The production was initially supposed to start in late 2021, but then the company pushed back to 2022.
And then, just yesterday, Reuters reported that TSLA won’t start production until the end of Q1 2023.
And it’s the last part of this Reuters report that gets me worried.
Electric Pick-up Competition Heating Up
So what’s the competition been up to?
Rivian (RIVN) is already shipping its Rivian R1T to clients.
Ford Motor Company (F) plans to deliver the first F-150 Lightnings in the first half of 2022.
Just last week I spoke to you about GM’s (GM) upcoming fully electric Chevy Silverado, due in 2023.
The EV Silverado will soon be joined by a fully electric version of GMC Sierra, sometime in 2023 or 2024.
Why does all that matter, apart from the obvious point of high competition?
Tesla seems to be losing the “first-mover advantage”!
And I think it’s highly problematic for a company whose entire appeal has been in being a bold first mover!
There’s a reason why the stock commands such a high value – for the entirety of its existence, the company has been at least a step ahead of everyone else. Oftentimes, many steps ahead!
That’s why investors were paying top dollar for a company that’s fundamentally worth a fraction of its current value.
What will happen to TSLA stock if the “market leader” and “first mover” perception starts to fade?
Short Term Stock Thoughts
While I’m speaking about a broader theme here, I think the subject may also prove a catalyst in the short term – I tend to believe it’ll be a negative one.
See, the company is yet to make any official statements on the Cybertruck delays.
With the stock trying yet again to break lower:
… I’m worried the dreaded announcement may come soon and be the catalyst that pushes through the $1000 support.
