Tesla, Inc. TSLA has seen its volume languish in 2023 despite the electric vehicle maker aggressively cutting prices for all its models. As the year draws to a close, there could be finally light at the end of the tunnel.
What Happened: Orders for all Tesla models could receive a boost in December, said Future Fund co-founder Gary Black in a post on X, formerly Twitter. The fund manager premised his optimism on the hordes of people queueing up outside Tesla showrooms to catch a glimpse of the Cybertruck.
Black’s comments came in response to a Tesla’s influencer’s post of a video clip showing people waiting in queue, with the latter captioning the post as “This isn't a line for the next iPhone, this is a line forming for the Cybertruck.”
Commenting on the post, Black said, “Lines were out the door at $TSLA stores across the country to view the Cybertruck this weekend.”
Why It’s Important: Some on the sell-side have expressed apprehensions concerning the Cybertruck’s contribution to Tesla’s growth in the near term. Black, however, has been consistently positive about the newest vehicle from Tesla’s stable that will launch on November 30.
The fund manager’s positive sentiment is not premised solely on the volume lift the Cybertruck per se will provide. He expects the vehicle to have a “halo effect” on the sale of all of Tesla’s lineup. In July, he said the Cybertruck, priced below $50,000, will become a “rolling billboard,” captivating onlookers and driving even more orders for other Tesla models.
The analyst sees the same scenario in 2021 to play out, when the Model Y launch lifted Telsa’s volume growth from 36% in 2020 to 87% in 2021.
Tesla ended Monday’s session up 0.27% at $236.08, according to Benzinga Pro data.
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