Tesla’s (TSLA) stock price took a dive after the unveiling of the Cybertruck last week, but now the stock is recovering as Elon Musk announces that Tesla already received over 200,000 pre-orders, which can be worth over $10 billion if fully converted.
As we reported last Friday, Tesla’s stock took a hit when the market opened after the unveiling the Cybertruck.
By the end of market hours, TSLA was down over 6%.
It’s difficult to tell exactly what from the event drove the price down so much, but some speculated that it was due to polarizing design, while others went as far as saying that it was due to the problem with the glass during the live demonstration.
Now today, which is only the second day of the markets being opened after the launch, Tesla’s stock is up almost 4% in pre-market trading.
It comes after CEO Elon Musk announced that Tesla received over 200,000 reservations for the Cybertruck just a few days after the unveiling.
Based on the cost of the Cybertruck, those pre-orders can be worth over $10 billion if fully converted into orders.
After the unveiling, Tesla started taking reservations for the truck with a $100 deposit.
The deposit amount was much lower than Tesla’s previous reservation programs, and it is the first time Tesla has released reservation numbers since the launch of the Model 3 in 2016.
That’s an interesting point. Since 2016, Tesla has unveiled and started taking reservations for the Tesla Roadster, Tesla Semi, Tesla Model Y, and now the Tesla Cybertruck, but the latter is the only one for which Tesla disclosed the reservation numbers.
Seth Weintraub and I discussed this on the Electrek podcast last Friday:
I said that it was part of Tesla’s strategy to release the number of reservations for the Cybertruck.
They knew that the design would be polarizing, but they also knew that they would get a decent number of reservations, especially if they set the deposit at just $100, and they could use the number to prove demand for the electric truck.
I don’t think it’s really representative of the demand, but I think it doesn’t matter because the demand is still going to be fairly high anyway.
A lot of people seem to be warming up to the design, which is definitely one that needs to grow on you, and the whole launch and truck went viral.
I wouldn’t be surprised if Tesla ends up receiving over 400,000 reservations for the Cybertruck by the end of the year.
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