Tesla Offers Discount on Cybertruck Amid Rising Competition

Tesla, Inc. TSLA began offering discounts on new Cybertruck models in its inventory last week, per the company’s website. Discounts range up to $1,600 for new Cybertrucks, depending on the configuration, and up to $2,600 for demo versions of the trucks in inventory. Reportedly, production of the angular, unpainted steel pickups has slowed at Tesla’s Austin, TX, factory.Deliveries of the Cybertruck began in 2023, though the vehicle was first unveiled by CEO Elon Musk in 2019 with a promised starting price of around $40,000. However, the base price in the United States was closer to $80,000 throughout 2024. Once seen as a critical growth driver for Tesla’s automotive business, the Cybertruck has faced challenges despite its unconventional design.In 2024, the Cybertruck outsold the Ford Lightning F-150 in the United States and ranked as the fifth best-selling EV domestically, per Cox Automotive. However, its high price, repeated recalls and production setbacks in Austin hindered growth. In November, TSLA issued its sixth recall of the year to address faulty drive inverters.Per CNBC, Tesla’s overall deliveries in 2024 declined slightly year over year despite global EV demand hitting record levels. Increased competition from new EV models across the industry eroded TSLA’s market share. Buyers now have a wide range of options from big names like Chevy and Hyundai to newer brands like Rivian and Lucid. Shoppers particularly looking for an electric truck have plenty of choices, such as the Ford F-150 Lightning, Chevy Silverado EV, GMC Hummer and Sierra EVs and the Rivian R1T. Per Cox Automotive, while full-year U.S. EV sales grew 7.3% to an estimated 1.3 million vehicles, Tesla’s sales dropped by approximately 37,000 units. The Tesla Model Y SUV and Model 3 sedan remained the top two best-selling EVs but experienced year-over-year sales declines. Cox Automotive estimated Tesla sold around 38,965 Cybertrucks in the United States in 2024. Looking ahead, the Cybertruck may face even greater challenges in 2025 as EV incentives are expected to be rolled back under President-elect Donald Trump and new tariffs are likely to disrupt the auto industry.TSLA’s Zacks Rank & Key PicksTesla currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Blue Bird Corporation BLBD and Allison Transmission Holdings, Inc. ALSN, 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 GELYY’s fiscal 2025 sales and earnings suggests year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 30 days. The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 60 days.The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 6.10% and 11.89%, respectively. EPS estimates for 2024 and 2025 have improved 2 cents and 3 cents, respectively, in the past seven days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Blue Bird Corporation (BLBD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks