Tesla Needs To Consider A 'More Conventional-Looking' Pickup Truck Says Gary Black Amid Cybertruck Sales Slump
Gary Black, managing director of Future Fund LLC, suggests that Tesla should consider developing a more conventional-looking pickup truck as Cybertruck sales decline, with FY'25 deliveries projected at only 20,000 units. He believes a cheaper pickup priced around $40-$50K could capture 2% of the global pickup market, potentially generating $800M in earnings. Currently, Tesla has over 10,000 unsold Cybertrucks in inventory, prompting a shift in marketing strategy. Black's firm has also sold its remaining Tesla stake, aligning with other analysts' sentiments.
Future Fund LLC's managing director, Gary Black, thinks Elon Musk's Tesla Inc. TSLA needs a pickup truck with a more conventional design as Cybertruck deliveries plunge.
What Happened: "With Cybertruck FY'25 deliveries currently tracking at just ~20,000, it's time for $TSLA to consider a cheaper (~$40-$50K), more conventional-looking Tesla pickup to capitalize on the global pickup truck opportunity," the investor said in a post on X on Tuesday.
He also outlined how, unlike a scaled-down Model Y, the new truck with some design cues from the new Model Y, "would likely have minimal cannibalization on existing TSLA models," Black said.
Also Read: Ford Recalls Over 29,500 F-150 Lightning Pickup Trucks Over Suspension Defect
The investor finally shared that if Musk's EV giant can capture at least 2% of the global pickup truck sector, it "could translate to incremental earnings of $800M, worth potentially $80B ($25/share) at a 100x P/E," Black noted.
Why It Matters: Black's comments come as the Cybertruck is proving to be a difficult product to sell for Musk and Tesla. The company reportedly has over 10,000 units of unsold Cybertrucks in its U.S. inventory, demonstrating the product's lack of appeal among traditional pickup buyers.
The EV giant even revamped the Cybertruck's marketing strategy to position the vehicle as a utilitarian workhorse with visuals of the Cybertruck hauling a trailer, tackling a dirt road, as well as hauling construction material.
Meanwhile, the company has also started accepting trade-ins for the Cybertruck just over a year after the product launched. Tesla reportedly offered $65,400 for an All-wheel-drive 2024 Cybertruck with 6,211 miles to a Cybertruck owner as a trade-in.
Elsewhere, Black recently shared that his firm offloaded its remaining stake in Tesla, a move that was in line with other expert analysts like Cathie Wood and even insiders like Musk's brother, Kimbal Musk.
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