- Elon Musk has announced the unveiling of Tesla’s new Cybertruck EV on Nov. 21.
- Tesla (TSLA) stock bounced immediately after the tweet was published.
- Despite its massive potential, there are plenty of headwinds for the Musk’s futuristic new pickup truck.
Tesla (TSLA) stock rallied sharply on Wednesday after CEO Elon Musk tweeted that the EV manufacturer’s hotly anticipated “Cybertruck” is set to be unveiled in Los Angeles.
Tesla’s Cybertruck Is Crucial Part Of Elon Musk’s Path to Sustainability
The positive reaction in Tesla stock was not surprising given how vital the new electric pickup truck is to the company’s outlook.
Tesla (TSLA) stock popped higher after Elon Musk announced the unveiling of his futuristic new “Cybertruck.” | Source: Yahoo Finance
In the United States, light truck sales are now almost 70% of the entire market for vehicles. Cracking this sector with the futuristic Cybertruck is essential if Elon Musk is going to succeed in making the company profitable and sustainable long term.
TSLA has been trading much more firmly since its impressive recent quarterly earnings in October sent the stock soaring. Wall Street had been expecting the company to post a loss of more than $200 million, but instead, Tesla flipped the script with a profitable quarter of $342 million.
TSLA Stock Cheers, But Musk’s EV Pick-Up Faces Major Hurdles
While the excitement surrounding Tesla’s foray into the pickup truck market is evident, there are a couple of significant hurdles for the company to overcome. Firstly, the Cybertruck is by no means a fundamentally unique product. There are plenty of U.S. manufacturers who are diving into this lucrative market with an electric offering.