Tesla Introduces New Cybertruck at $70,000 Amid Sluggish Demand

Tesla, Inc. TSLA has officially introduced a new rear-wheel-drive (RWD) version of the Cybertruck in the United States and Mexico at $70,000. This new model is more expensive than the previously announced RWD model and lacks many features, but it offers increased range. Tesla confirmed that the vehicle comes with a single RWD motor and a driving range of 350 miles, more than the previously announced version with a range of 250 miles. This suggests that it likely uses the same battery pack as the Dual Motor and Cyberbeast variants. Initially, it was unclear if this version was intended for the Middle East or would replace the previously announced $62,000 RWD model. Now, Tesla has added the Cybertruck Long Range RWD to its online configurator for customers of the United States and Mexico. Before the incentive, it starts at $70,000, which is $9,000 more than the earlier RWD version, but offers an additional 100 miles of range. This variant is also $10,000 cheaper than the Dual Motor model. However, the new RWD variant comes with several trade-offs. It drops the second motor and powered tonneau. Soft tonneau is available at $750, which boosts the range to 362 miles. It also drops the adaptive suspension, rear lightbar, rear screen and even the truck bed’s power outlets, per Tesla’s website. The new variant’s deliveries are expected to begin in June. Tesla’s Cybertruck is facing a tough start in 2025. Per Cox Automotive, the company delivered 6,406 units in the first quarter. While the deliveries are twice the number it made in the year-ago period, the figure is significantly down from the 14,416 and 12,991 units sold in the third and fourth quarters of 2024, respectively.  The EV giant is facing multiple challenges that include several recalls and rising material costs due to potential tariffs on steel, aluminum and imported parts. These factors, combined with sluggish demand, have left Tesla with about 2,400 unsold Cybertrucks in inventory, per Jalopnik. The broader auto market is also under pressure. Tariff-related cost increases are expected to drive up vehicle prices significantly, with Goldman Sachs recently cutting its U.S. auto sales forecast for 2025 by 1 million units to 15.4 million. Tesla’s Zacks Rank & Key PicksTSLA carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Suzuki Motor Corporation SZKMY and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days.The Zacks Consensus Estimate for SZKMY’s 2025 sales and earnings implies year-over-year growth of 8.59% and 48.43%, respectively. EPS estimates for 2025 and 2026 have improved 56 cents and 39 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Suzuki Motor (SZKMY): Free Stock Analysis Report China Yuchai International Limited (CYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks