[Fox Business] Cybertruck’s price tag draws mixed reviews

Reactions are rolling in since Tesla’s release of its Cybertruck pricing.

The electric vehicle and clean energy company unveiled Thursday how much the three versions of the Cybertruck would cost after a delivery event led by CEO Elon Musk showcased the vehicle and its features. It has rear-wheel drive, all-wheel drive and “Cyberbeast” versions.

They have $60,990, $79,990 and $99,990 estimated price tags, respectively, posted on Tesla’s website.

For Daniel Ives, Wedbush Securities senior equity research analyst, the announced Cybertruck cost was “in line” with what he had projected, according to a research note Thursday. 

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“Launching Cybertruck is important for the broader Tesla growth story over the coming years and also will prove to the doubters that Musk can successfully expand the Tesla halo effect as more consumers head down the EV path over the coming years,” the Wedbush note said. 

“While Cybertruck does not significantly move the financial needle for Tesla in FY24, it further shows the innovation and mind share lead that Tesla has built with many OEM competitors around the world still on the treadmill stuck in neutral.”

Some 2,000 to 3,000 Cybertrucks could be produced during the current quarter, Ives projected. The Wedbush senior analyst also suggested Tesla could manufacture 10,000 in a quarter for the first time in the initial six months of the year. 

In a video posted on social media platform X, Deepwater Asset Management Managing Partner Gene Munster said the Cybertruck was “across the board 20 to 25% higher than I expected” in terms of price. 

“I think Tesla’s doing the right thing by pricing this high, and the reason is that they know they can’t produce a lot of these vehicles,” he added. “I suspect in 2024 they’ll be able to produce 35,000, which is enough that if they’ve got pre-orders of a million-plus … they can price it higher to kind of capture the margin on the few vehicles they’ll be able to deliver.”

Munster said Tesla will have to lower the price in the future, something he suggested could happen “in a couple years” once the company boosts production and efficiencies. 

“I think that Cybertruck still has the ability long-term to be an important part of Tesla’s lineup and be probably one of the top three vehicles in terms of units,” he added. 

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The first deliveries of the Cybertruck came about four years after Tesla’s initial reveal of the electric pickup truck. 

Musk said a couple months ago “there will be enormous challenges in reaching volume production with the Cybertruck and then in making a Cybertruck cash flow position.”

“This is simply normal when you’ve got a product with a lot of new technology or for any new vehicle program, but especially for one that is as different and advanced as the Cybertruck. You will have some problems proportionate to how many new things you’re trying to solve at scale. So, I just want to emphasize that one,” he said. “I think this is potentially our best product ever.”

Tesla wants to manufacture 200,000 Cybertrucks annually, according to past comments from Musk. 

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The Tesla CEO said in October the company’s expectations for total deliveries of its various vehicle types remained around 1.8 million for the year. 

In the third quarter, Tesla produced nearly 430,500 of its Model S, X, 3 and Y vehicles. Deliveries of those models totaled about 435,000. 

The electric vehicle and clean energy company reported overall vehicle production of 1.37 million and deliveries of 1.31 million last year, both of which represented double-digit-percentage growth compared to 2021.

Eric Revell contributed to this report.

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[Fox Business] Walmart stops advertising on X, adding to growing list of companies

Walmart no longer advertises on X, adding to the list of companies that have halted ads on the social media platform owned by Elon Musk.

A spokesperson for the retail giant on Friday confirmed to FOX Business in a statement, “We aren’t advertising on X as we’ve found other platforms to better reach our customers.” The news was first reported by Reuters.

A person familiar with the situation told FOX Business that Walmart’s decision to stop advertising on X was not made overnight, but was rather a gradual progression away from the platform over quite some time.

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When reached for comment, Joe Benarroch, head of operations at X, said Walmart has not advertised on X since October, so this is not a recent pause. He noted that Walmart still engages organically with its substantial following on the platform, even posting a survey for users on Friday.

Benarroch pointed to Walmart’s profile on the platform and said in a statement, “Walmart has a wonderful community of more than a million people on X, and with a half a billion people on X, every year the platform experiences 15 billion impressions about the holidays alone with more than 50 percent of X users doing most or all of their shopping online.”

X, formerly known as Twitter, has struggled to retain advertisers since Musk acquired the company in October 2022, and was hit with a fresh exodus in recent weeks over concerns about antisemitic content.

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Some major corporations, including Disney, IBM, Apple and Lionsgate, ceased advertising on X in mid-November, following a pair of controversies.

The first occurred when Musk commented that an X user had “said the actual truth” after that person alleged Jewish communities have spread “hatred against whites.” The tech billionaire has since traveled to Israel and met with its leaders, apologized, and reiterated that he condemns antisemitism.

The ad halt by companies also followed Media Matters for America reporting X ads for certain firms and antisemitic content had shown up adjacent to each other. X has since lodged a defamation complaint against the outlet over the report that it claimed left a “false impression that these pairings are anything but what they actually are: manufactured, inorganic and extraordinarily rare.”

Then, during a Wednesday afternoon appearance at the New York Times DealBook Summit, Musk lashed out at advertisers fleeing the platform, telling them, “Go f— yourself.”

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X CEO Linda Yaccarino seemingly tried to do some cleanup following Musk’s remarks, posting on the platform, “Today @elonmusk gave a wide ranging and candid interview at @dealbook 2023. He also offered an apology, an explanation and an explicit point of view about our position.”

“X is enabling an information independence that’s uncomfortable for some people. We’re a platform that allows people to make their own decisions,” she added.

FOX Business’ Aislinn Murphy and Reuters contributed to this report.

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