Can Tesla’s Surging Cybertruck Orders Lift Its Stock?

Tesla’s CEO, Elon Musk, recently tweeted that its Cybertruck had received 200,000 orders. TSLA fell on November 22 despite the Cybertruck’s unveiling.

Mohit Oberoi, CFA - Author

Nov. 25 2019, Published 2:24 p.m. ET

uploads///Tesla cybertruck TSLA stock

Tesla’s (TSLA) CEO, Elon Musk, recently tweeted that the company’s Cybertruck had already received 200,000 orders. Previously, Musk had tweeted that Cybertruck orders had crossed 146,000. However, it’s worth mentioning that these are preorders and not orders, says CNBC.

TSLA fell sharply on November 22 despite the Cybertruck’s unveiling, but it’s still up 5.7% for the month.

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Surging Tesla Cybertruck preorders

TSLA stock closed down 6.1% on November 22. While the stock is still positive for the month, it’s now trading flat for the year. Notably, since October, it’s outperformed the broader markets as well as automakers such as Ford (F) and General Motors (GM). However, despite its strong performance in October, TSLA’s returns have sagged year-to-date.

What could be the next big thing?

Tesla’s Model Y is expected to hit the markets next year. It’s also unveiled its Cybertruck. The company’s China Gigafactory is also ramping up operations even as it’s finalized Germany as the location of its next Gigafactory. Now, it’s delivery time. In short, Tesla needs to deliver on several fronts, including sustainable profitability, to justify its valuation.

TSLA’s market cap is higher than those of Ford and General Motors, both of which post sustainable profits and deliver many more vehicles than Tesla. But TSLA bulls don’t like to see the company placed on the same playing field as established automakers. Valuing TSLA stock is a conundrum in itself. Read Tesla Stock’s Valuation: A Good Time to Buy TSLA? for more analysis.

Tesla short sellers

TSLA’s short sellers have had a rough ride over the last month. The company’s third-quarter profit triggered a buying spree, leaving the bears running for cover. However, as most short-term positives look to be priced in, TSLA’s rally could lose steam. The stock is trading about 11% below its 52-week high. It could face difficulty crossing this 52-week high in the absence of more positive triggers.

As for Tesla shorts, they got burned amid the strong rally last month. But don’t rule out the Tesla bears just yet. Read Tesla Short Sellers Are Hit after TSLA Makes a Profit for more analysis.


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