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Tesla’s unique strategy regarding crucial Cybertruck details is the best ad there is
Tesla has had a unique strategy with the all-electric Cybertruck since it was first unveiled four years ago in Los Angeles. It might be the best advertisement there is.
For the past few years, Tesla has not tipped its hand with certain details regarding the pickup, and some might argue they are the most crucial parts of a vehicle’s buildup, especially for an EV: price, trim levels, and range.
It is an ongoing strategy that has been keeping the Cybertruck in the public discussion of the entire automotive sector for the last few years as the prices have gone from $39,990, $49,990, and $69,990, to whatever your best guess is.
A company that has been headstrong against the prospect of advertising, Tesla knows how to stimulate consumer discussion around itself. After all, its CEO Elon Musk also owns X, which less than a year ago was known as Twitter. Musk is no stranger to being in a headline, and he knows how to get people talking. Perhaps a genius in advertising, too, the CEO has everyone buzzing about what the Cybertruck will cost and how long it will go on a single charge.
Credit: Tesla Inc.
But this might be exactly the buzz Tesla and Musk want, even if it is keeping the most loyal fans in the dark about the particulars of what is its most unique vehicle yet. Even those who are not EV enthusiasts and have no interest in the Cybertruck want to know what a stainless steel-covered pickup will cost and what its capabilities are.
Instead of spending hundreds of thousands of dollars on ads and millions more on an general advertising budget, there is the advantage of curiosity that Tesla has shamelessly adopted and used to its advantage, all leading up to this Thursday. It is no secret that pricing is likely going to be different than what it was in 2019. Too much has changed from a macroeconomic perspective.
But the jury is still deliberating on what this strategy entails. Has it worked on creating buzz? Obviously. Is it fair to the consumer? Not necessarily.
Tesla CEO Elon Musk unveils futuristic Cybertruck in Los Angeles, Nov. 21, 2019 (Photo: Teslarati)
There are no products that come to mind for me when I think of an imminent launch and lack of details in terms of pricing and capabilities. Imagine if Apple reworked the iPhone and decided to keep the price a secret, at least until hundreds of people lined up outside of their stores and showed up to buy it, only guessing what their credit card bill would be the following month.
With a car, it’s obviously different. It’s a long-term payment structure because the truck is going to cost tens of thousands, much more than an iPhone. Even still, this argument can be used to support the counterargument: if people are going to spend this much on a vehicle, isn’t there a reason for them to have an idea of how much they will pay?
This leads to several ideas about the delivery event this Thursday in Austin. As the Cybertruck’s Certificate of Conformity, Certificate Information, and Application have yet to be published by the EPA, it is interesting to think about who exactly will be taking delivery of the Cybertruck this week. It might be influencers who were sworn to secrecy by an NDA, it could be employees, and of course, it could be regular people who just happened to place a reservation very early, perhaps just moments after the configurator was launched.
Credit: Joe Tegtmeyer | X
Whoever does get their hands on an early Cybertruck build will be lucky, as rumors of between 10 and 30 units being delivered on Thursday have both circulated. There are at least a million orders for the Cybertruck, Musk said on the most recent Earnings Call.
No matter what happens, the Cybertruck has been an advertisement in itself, and it has concentrated the entire automotive industry’s attention this week. All eyes are on Tesla and the Cybertruck, as a vehicle four years in the making is finally here, and it is perhaps the best advertisement the automaker could have ever had for itself.
Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
