Tesla shares drop after new Cybertruck pricing reveal

On Friday, Tesla’s CEO, Elon Musk, revealed that the long-awaited futuristic ‘Cybertruck’ is going to cost 50% more than his initial estimates.

New prices will start at $60,990, but many still worry about the car’s potential usefulness.

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Tesla’s shares have been falling all week and are down 3% at the time of writing on Friday. That said, Tesla shares are up a bumper 117% year-to-date, paying testament to Musk’s pricing strategy across the Tesla fleet.

The truck was inspired by a car-turned-submarine from the 1977 James Bond movie “The Spy Who Loved Me,” said Musk.

Musk himself never hid his excitement about the car’s futuristic look and speed range.

The Cybertruck, he said, “can not only beat a Porsche 911 on the track, but it can also tow a 911 faster than the 911 can drive itself”.

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When the design was first revealed by Tesla four years ago, many voiced their concerns about the car’s everyday usefulness and, therefore, its popularity on the market. Some refer to it as a comic-book car due to its futuristic design.

After that, responding to a major critique of the Cybertruck’s design—its practicality—Tesla presented a video demonstrating the truck’s superior towing capacity compared to a Ford F-350 diesel truck, as well as similar models from Chevrolet, Ram, and Rivian.

Following Musk’s 2019 projection of a $40,000 price for the Cybertruck, the vehicle garnered over a million reservations with $100 deposits.

Despite escalating raw material expenses for electric vehicles (EVs), Musk had not revised the price until Monday, announcing new deposits at $250. Analyst Paul Waatti from consultancy AutoPacific noted that the pricing was expected, anticipating the Cybertruck to resonate well with a more niche audience.

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