Don't buy Tesla & Cybertruck yet ! Read & decide.

For the past 2 trading days, $Tesla Motors(TSLA)$ has been making “baby” gains in its stock price. (see below)

It has gained +0.84% to $236.08 per share, coming off from a negative bad press due to its owner’s inability to keep his big mouth shut. (see below)

Apart from (a) falling stock price, (b) big companies halting advertisements on Twitter, the man now has made a personal trip to Israel. (see below)

He has an audience with the Prime Minister himself. Presumably he would try to explain his way out of the current backlashes and predicament, that he has set himself up for.

Is he really sincere about making amends OR is it another sideshow of his, in order to put a stop to all the backlashes both Tesla & Twitter have endured?

It is difficult to say that this man is brilliant, looking at all the blunders he has committed.

What is worse is that he never learns; it’s one big mistake after another.

I think the main reason why Tesla stock price has been on the rise is due to its impending Cybertruck delivery event, that will happen on Thu, 30 Nov 2023.

Afterall, it has been >130 days since Tesla announced it built the first Cybertruck at its Texas plant.

With shipments of the first new Tesla vehicle in nearly 4 years set to begin, that has generated excitement (a) with customers who have paid and waited for its overdue delivery and (b) Tesla-fanatics.

I believed the excitement will filter through until Thu, 30 Nov 2023, the big reveal day itself.

Before anyone gets too carried away and jump straight into buying Tesla shares, below are my homework warnings:

Cybertruck - quality issues. (see below)

• It was reported that Tesla's Cybertruck is facing problems with gaps in its stainless-steel body panels.

• This raises serious questions about both quality and reliability of the futuristic truck.

• The prototype Cybertruck, unveiled in 2019 with much fanfare, is supposed to be a durable & versatile electric pickup truck that can withstand harsh conditions and environments.

• The report also suggests that the manufacturing process of the stainless-steel body is not as precise as expected, resulting in uneven gaps that could affect the (a) aerodynamics, (b) safety and (c) aesthetics of the Cybertruck.

• The “flaws” could potentially (a) damage Tesla's reputation, (b) customer satisfaction, as well as (c) further delay the production and (d) affects delivery of the highly anticipated vehicle.

The futuristic electric pickup truck, which was unveiled in November 2019, has generated a lot of hype and controversy since then.

With delivery due in 3 days’ time, there are still many unknowns about the Cybertruck that could affect its success & impact on the market.

What Are The 5 Unknowns?

(1) How many pre-orders have been converted into actual orders?

• Tesla claimed to have received >250,000 pre-orders for the Cybertruck within a week of its debut.

• To date, it is unclear how many of those customers have confirmed their orders and paid the full deposit.

• Some analysts estimate that only 10% to 20% of the pre-orders will translate into sales, while others are more optimistic.

(2) Cybertruck’s performance in real-world conditions?

• The electric truck’s design and features have raised some questions about its practicality and safety. For instance, how will the stainless-steel body handle scratches, dents, and corrosion?

• How will the glass windows withstand impacts and temperature changes?

• How will the truck's size and weight affect its maneuverability and efficiency?

(3) How will the Cybertruck compete with other electric pickup trucks?

• The Cybertruck is not the only electric pickup truck in the market.

• Several established automakers, such as $Ford(F)$ , $General Motors(GM)$ and $Rivian Automotive, Inc.(RIVN)$ have already launched or announced their own electric trucks, that offer more conventional designs & features.

• New entrants, such as Lucid Group (LCID) and Bollinger Motors, are also planning to enter the segment with their own innovative truck models.

(4) Will Cybertruck affect Tesla's profitability and cash flow?

• The Cybertruck is expected to have a lower profit margin than Tesla's other vehicles, due to its higher production costs.

• Tesla has also invested heavily in building a new factory in Texas to produce the Cybertruck, that could strain its cash flow and liquidity.

• Additionally, Tesla may face legal challenges & regulatory hurdles related to the Cybertruck's design and safety standards, that could result in further delays and fines.

(5) Will Cybertruck destroy Tesla's brand image & reputation?

• The Cybertruck is a bold and risky move for Tesla, as it represents a departure from its previous products and targets a different customer segment.

• The truck could either (a) enhance Tesla's reputation as an innovative and visionary company, or (b) damage its image as a reliable and quality-oriented car maker.

What is extremely strange:

Three days before the big reveal, Tesla still has not released Cybertruck’s:

• Pricing.

• Vehicle’s general specifications.

• Vehicle’s driving.

• Vehicle’s delivery ramp up will look like.

The Million Dollar Question:

If you have read up to this point of my post, you would have discovered the latest with regards to Tesla’s Cybertruck.

It is still up in the air, how well or unwell Cybertruck:

• Will perform during Thursday big unveil?

• Will be accepted by the community as a whole

• Will generate excitement on both parents & children.

It is certain you would not find me behind the wheel of this “monster” for sure. Its poison (to me) but meat for many fans out there.

For a more calculated & “safer” bet, would you consider investing in Chinese EV maker - $Li Auto(LI)$ instead?

• Must Read: Hold back on US stocks until Thu, 30 Nov 2023 ! click on title to read, help to like & repost ok. Thanks.

• Do you think Tesla’s Cybertruck will help propel Tesla’s stock price higher ?

• Do you think Tesla’s Cybertruck will help to turn Tesla “south”?

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