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Kelley Blue Book Executive Analyst Akshay Anand joins The Final Round to discuss Tesla's ‘cybertruck' electric pickup that’s to be announced Thursday night.
(Bloomberg) -- Tesla Inc. Chief Executive Officer Elon Musk took to the stage late Thursday to reprise a familiar role: pitching a future vehicle to a throng of adoring fans. This time, it’s the “Cybertruck” -- his name for Tesla’s new electric pickup truck.The angular vehicle, with a stainless-steel skin, starts at $39,900 and will come in three variants, Musk told a packed audience in Hawthorne, California. Customers can order the truck with just a $100 deposit, though production “nears in late 2021,” Tesla said on its website.After a “Blade Runner”-inspired introduction, Musk had Tesla’s long time chief designer, Franz von Holzhausen, smash the truck’s steel exterior with a sledgehammer, showing that it did not dent.The second demonstration, of “Tesla armor glass,” was the real show stopper: von Holzhausen unintentionally shattered two windows with a metallic ball, causing Musk to say “Oh my f---ing god.” Given how product launches are usually scripted and rehearsed, the broken windows were the evening’s big surprise.The evening began with a slide show of standard pickup trucks throughout the years, and Musk’s vow to make something different that runs on sustainable energy.“You want a truck that’s really tough, not fake tough,” Musk said, in what seemed to be a veiled swipe at Ford Motor Co.’s slogan. “A truck you can take a sledgehammer to that doesn’t dent.”Tesla fans, who packed the audience, liked what they saw.“It’s like something out of a movie set,” said Elizabeth Lepek of Marina del Rey, California, a current Tesla Model X owner who placed a $100 deposit for the Cybertruck. “It’s so futuristic. I like the design of it. There’s nothing quite like it on the road.”But traditional truck buyers are a tougher audience and less likely to be impressed by Silicon Valley sizzle.“It misses the core truck buyer,” said Gene Munster, a managing partner at venture capital firm Loup Ventures. “A contractor is not going to show up to a work site in this truck. That said, Tesla will still sell some of them.”The hashtag cybertruck quickly began trending on Twitter as potential customers started sharing their views about the futuristic design and the window snafu.And though it will take a long time before the Cybertruck hits streets, that’s something Tesla customers are used to. Musk unveiled a Semi truck two years ago, but that vehicle has yet to enter volume production.The lucrative full-size pickup market in the U.S. is dominated by the Detroit 3: Ford Motor Co.’s F-150, Fiat Chrysler Automobiles NV’s Ram 1500 and General Motors Co.’s Chevy Silverado. Japanese automakers have spent two decades and billions of dollars to get in on the gravy train, but U.S. brands still control almost 92% of the half-ton segment, according to IHS Markit.“The design will be questioned, but over time the specs will help win over pickup loyalists,” said analyst Ben Kallo of Robert W. Baird. “But the volumes are expected to be low, and the Model 3 and Model Y continue to be the focus.”(Updates with comment from analyst in last paragraph)\--With assistance from Thuy Ong, Natnicha Chuwiruch and Derek Wallbank.To contact the reporters on this story: Dana Hull in San Francisco at firstname.lastname@example.org;Ed Ludlow in San Francisco at email@example.comTo contact the editors responsible for this story: Chester Dawson at firstname.lastname@example.org, Ville HeiskanenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dow Jones futures: The Tesla cybertruck event is underway with Tesla stock in a buy zone. Ross Stores, Pure Storage, Splunk were earnings movers.
(Bloomberg) -- Elon Musk unveiled Tesla Inc.’s eagerly awaited electric pickup truck on Thursday but it didn’t go as planned, ending with two smashed windows and the hashtag cybertruck trending on Twitter for all the wrong reasons.In the demo, Tesla chief designer Franz von Holzhausen initially took a sledgehammer to the truck, which withstood the impact. Then it all went wrong.Von Holzhausen took a metallic ball in his right hand, wound up and tossed it at the truck -- smashing the front driver-side window, stunning the audience and viewers live streaming the event.“Oh my f---ing god,” Musk said, when the window broke.“Maybe that was a little too hard,” Musk said after the ball cracked the glass. So they tried again. A second test broke a second window.“It’s classic Tesla. It’s poetic,” said analyst Gene Munster of Loup Ventures. “I applaud the company for taking risks: this was not a boring presentation. The broken glass was unpredictable. This wasn’t practiced.”The event was shown on YouTube, with the video made private shortly after. The heavy-duty truck retails from $39,900 and will come in three different variants.“This obviously wasn’t a true production vehicle so Tesla gets a pass for now,” said Akshay Anand, executive analyst at Kelley Blue Book. “But if they are going to market the glass as a differentiator, they better be able to show stronger tests leading up to launch.”(Updates with comment from analyst in eighth paragraph)\--With assistance from Dana Hull.To contact the reporters on this story: Thuy Ong in Sydney at email@example.com;Natnicha Chuwiruch in Bangkok at firstname.lastname@example.orgTo contact the editors responsible for this story: Niluksi Koswanage at email@example.com, Derek Wallbank, Young-Sam ChoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The much anticipated truck from Tesla can tow 14,000 pounds, and the base model is priced under $40,000. How does it look? Triangular.
Tesla Inc. late Thursday revealed its long-awaited all-electric “Cybertruck,” boasting a starting price tag under $40,000.
Tesla Inc on Thursday unveiled its first electric pickup truck that looked like a futuristic angular armored vehicle in gunmetal gray, as the California company took aim at the heart of Detroit automakers' profits. At a launch event in Los Angeles, Tesla Chief Executive Elon Musk said the Cybertruck will have a starting price of $39,900 and production is expected to begin in late 2021. If we don't have a pickup truck, we can't solve it.
At a launch event in Los Angeles, Tesla Chief Executive Elon Musk said the Cybertruck will have a starting price of $39,900 and production is expected to begin in late 2021. If we don't have a pickup truck, we can't solve it. The top 3 selling vehicles in America are pickup trucks.
Panasonic Corp has no plans to build a new battery plant for Tesla Inc in China, the Japanese company's chief executive said, as it struggles to make money from its existing battery business with the electric vehicle (EV) maker. "We don't have any plans at the moment to set up a production site in China for Tesla's Chinese business," CEO Kazuhiro Tsuga told reporters at a strategy briefing on Friday. "It is up to Tesla to decide whether it would use Chinese-made batteries from other manufacturers or get batteries from our Gigafactory 1 (in Nevada)," he said.
Panasonic Corp has no plans to build a new battery plant for Tesla Inc in China, the Japanese company's chief executive said, as it struggles to make profits from its existing battery business with the electric vehicle maker. "We don't have any plans at the moment to set up a production site in China for Tesla's Chinese business," CEO Kazuhiro Tsuga told reporters at a strategy briefing on Friday. "It is up to Tesla to decide whether it would use Chinese-made batteries from other manufacturers or get batteries from our Gigafactory 1 (in Nevada)," he said.
(Bloomberg) -- Tesla Inc. said it’s planning to start delivering made-in-China Model 3 cars before late January, another sign that the company is nearing mass production in the world’s largest auto market.“We are making an effort to gradually deliver before the Spring Festival to let our customers drive our China-built Model 3 sedans back home for the holidays,” Tesla said in response to a Bloomberg query. The Spring Festival, a weeklong holiday marking the lunar new year, begins Jan. 25.The deliveries would come from the first batch of cars that Tesla produces in bulk later this year — not the test vehicles that the company has been manufacturing in small quantities recently. Tesla said in October that it expected to begin deliveries to customers in the first quarter but didn’t specify which month.China’s first plant wholly owned by a foreign carmaker — and Tesla’s first outside the U.S. — will be a crucial test for Chief Executive Officer Elon Musk as he seeks to prove his carmaker can sustain profitability. The Shanghai Gigafactory, which broke ground in January, will initially build Model 3 sedans that will compete with electric cars from local contenders such as NIO Inc. and Xpeng Motors, as well as global manufacturers including BMW AG and Daimler AG.Tesla shares rose 0.7% to $354.83 in New York on Thursday in the run-up to the scheduled unveil of the company’s first pickup truck.(Updates with shares in final paragraph.)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Futures: The stock market just edged lower Thursday despite hefty losses in some chip stocks and other leaders. The Tesla cybertruck unveiling is on tap.
All three major U.S. stock indexes closed with minor losses on Thursday, as a U.S.-China trade deal looks more complicated. Still, Chinese Vice Premier He Liu is “cautiously optimistic” and invited his U.S. counterparts to China for more talks.
The Dow Jones closed lower Thursday, down 239 points for the week. Tesla stock traded higher ahead of its cybertruck debut and is in a buy zone.
Some on Wall Street are skeptical about the new Tesla Inc. pickup truck — it could be so futuristic that it would leave traditional pickup buyers unhappy with its design.
Throughout my analysis of Tesla, I have compared Tesla to Apple, the Model 3 to the iPhone, and Telsa founder Elon Musk to Apple co-founder Steve Jobs. What I am struggling with is this: Can Tesla become as successful as Apple, and can Tesla cars turn into an iPhone-like franchise, taking electric-vehicle market share from nothing to 10% to 30% of the global automobile market? Tesla (TSLA) has many advantages.
Elon Musk is making outrageous claims once again — this time about Tesla pickups that he says will be far better and more powerful than anything on the market
Legendary short seller Jim Chanos dispels rumors he has covered his Tesla shorts, saying that Tesla “is and remains one of our biggest and our best short positions.”
General Motors Co's first electric pickup truck model will go on sale in the fall of 2021, the company's top executive said, around the same time that electric carmaker Tesla Inc's own model is expected to debut. "General Motors understands truck buyers and ... people who are new coming into the truck market," Chief Executive Officer Mary Barra said at an investor conference in New York on Thursday. The No. 1 U.S. automaker has so far given few details on its planned line of electric pickup trucks.
“Tesla is and remains one of our biggest and our best short positions,” says Jim Chanos, founder of Kynikos Associates. “We’re still bears.”
(Bloomberg) -- A year before Elon Musk was ready to unveil Tesla’s first pickup model, the chief executive officer was setting a low bar for the amount of demand it will draw. Dig into the dynamics of the fiercely competitive and tough-to-crack U.S. truck market, and it’s easy to see why.Japanese automakers have spent two decades and billions of dollars trying to get in on the big pickup gravy train. But 20 years after Toyota first started making the Tundra, Detroit brands continue to crush the competition, controlling almost 92% of the half-ton truck segment, according to IHS Markit. Customers who own Ram pickups are more loyal than owners of any other model line in the U.S., the researcher says, and brand loyalty to Ford Motor Co. or General Motors Co.’s Chevrolet isn’t far behind.Late Thursday, Musk will start his ascent up arguably the toughest hill Tesla has tried to climb yet with the debut of Cybertruck. He cautioned in November of last year that he wasn’t sure if a lot of people will buy the pickup and in June said the design won’t be for everyone. The comments contrast starkly with the bold predictions the billionaire has made about how many Model 3 sedans and Model Y crossovers his company will manage to sell in the coming years.“An electric pickup truck needs to meet the needs and capabilities of current pickup trucks and deliver a little bit more,” Stephanie Brinley, an IHS Markit analyst, said by phone. “A traditional pickup-truck buyer may consider electric, but they are not going to give up on capability.”Detroit automakers aren’t waiting for Musk to take the wraps off his truck before starting to talk a little trash. Thirteen months after the Tesla boss tweeted that his pickup will boast 300,000 pounds of towing capacity, Ford released a video of an electric F-150 prototype dragging 1 million pounds of double-decker rail cars.GM CEO Mary Barra told investors at an event in New York on Thursday her company’s first electric pickup will debut in showrooms in late 2021, and it will have a leg up on the competition. “General Motors understands truck buyers,” she said. Other GM executives also are confident that Tesla’s pickup won’t be in the same league as their electric truck.“I suspect price-wise there might be some similarities, but I think in terms of size and capabilities, there might be a difference,” Phil Brook, the vice president of marketing for GM’s GMC brand, said in an interview. “People who buy our trucks, they are very proud of the fact that they’ll take their trucks anywhere, they’ll get them dirty, then they’ll wash them out and go to a five-star restaurant for dinner. So they’re not people who just drive them around and want to look good.”On a RollMusk told a Tesla enthusiast podcast earlier this year that he wants his truck to start at less than $50,000. Not all of his comments about the pickup have moderated expectations: During an October earnings call, he declared it will be the company’s “best product ever.”Tesla shares have been on a roll since that quarterly report, surging 42% on optimism the company can produce profits on a more sustainable basis. But it’s unclear how soon the new truck will contribute to those efforts. The Model Y crossover is scheduled to launch next summer, and limited production of the Semi truck is planned for next year. Toni Sacconaghi, an analyst at Sanford C. Bernstein, expects Tesla to begin building the pickup in late 2020 or early 2021.Tesla shares rose 1.2% to $356.58 as of 2:04 p.m. Thursday in New York.Tesla probably won’t have the electric-truck market to itself for long, if at all. Amazon-backed Rivian Automotive plans to launch its R1T pickup late next year. Ford has vowed to start selling hybrid-electric and battery-electric versions of the F-150 starting in 2020, and GM has committed to producing plug-in pickups at a plant it had been planning to shutter in the Detroit area.Battery prices will have to drop significantly for electric trucks to reach parity with combustion engine-powered pickups, according to Dan Levy, an analyst at Credit Suisse.“Given electrification cost constraints and customer preferences, we expect the large-truck segment will be among the last segments to see an inflection in volumes toward electrification,” Levy wrote in a report this week. He assumes Tesla will be selling about 50,000 pickups by 2025, compared with roughly 300,000 Model 3 and 400,000 Model Y.One obstacle that shouldn’t be overlooked is the tough time Tesla has had operating in truck country. Texas, which bars manufacturers from selling vehicles direct to consumers, is the top state for U.S. registrations of half-ton pickups, according to IHS. The state’s share of the nationwide total this year through September -- 14% -- is more than double the runner-up, Michigan, which also has a ban.‘Blade Runner’Tesla’s Thursday night event bookends the press days for the Los Angeles Auto Show, where Ford generated buzz with the debut of the Mustang Mach-E electric SUV. But seeking attention of his own wasn’t the only motivation for Musk to stage his truck reveal now and near the show. When announcing the date and locale, he joked on Twitter they were “strangely familiar” and shared a link to the opening credits and scene of the 1982 film “Blade Runner,” which was set in November 2019. He had referenced the movie before as inspiration for the pickup’s futuristic design.“Musk has indicated it ‘looks like an armored personnel carrier from the future,’ from the set of Blade Runner, and is ‘unrecognizable from the trucks from the past 20-40 years,’ which we think could carry the risk of not attracting traditional pickup buyers, leaving it a lower-volume niche product,” Emmanuel Rosner, a Deutsche Bank analyst, wrote in a report this week. Investors will want to know more about production timing, increased capital-spending requirements and where Tesla will build the truck, he said.Musk is scheduled to begin making remarks around 8 p.m. local time at Tesla’s design center in Hawthorne, California.(Updates with GM CEO comments from sixth paragraph)\--With assistance from Keith Naughton and Chester Dawson.To contact the reporter on this story: Dana Hull in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Chester Dawson at email@example.com, Craig Trudell, Melinda GrenierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Nov.21 -- Tesla Chief Executive Officer Elon Musk is about to unveil his "Cybertruck." But Detroit automakers aren’t waiting for Musk to take the wraps off his truck before starting to talk a little trash. Bloomberg's Chester Dawson has a preview on "Bloomberg Technology."