logo
Behold, the epic flop that is the Cybertruck

Behold, the epic flop that is the Cybertruck

Yahooa day ago
A version of this story appeared in the CNN Business Nightcap newsletter. To get it in your inbox, sign up for free here.
It might not come as a shock if you have eyes, but the Cybertruck is, officially, a flop.
Tesla is deliberately opaque about its sales numbers on specific models, so you have to squint to get a sense of just how badly the company's dystopian dumpster on wheels is performing in the real world.
But we definitely have some idea.
Here's what we know, based on Tesla's deliveries (a proxy for sales) released this week: The EV maker delivered about 384,000 vehicles in total, world-wide, between April and June this year — a record 13.5% decline from a year earlier.
Zoom in, and it gets uglier.
Tesla doesn't break out sales of the Cybertruck, one of its 'premium' models that was plucked straight from CEO Elon Musk's internet-addled brain. It discloses just two categories — the Model 3 and Y in one category and, in the second, 'other models,' which is almost entirely the company's legacy Model S sedan, the Model X SUV and the Cybertruck.
The company said it delivered about 10,400 'other' models in the second quarter, which itself is a huge problem. In the same quarter last year, Tesla sold more than 21,500 'other' models. It's hard to think of another word for a 52% decline other than a collapse.
How many of those 'others' are Cybertrucks, and how many are the Model S or X? That's not entirely clear.
But let's look at the first three months of this year. Tesla sold about 12,900 'other' models, of which 7,100 were Cybertrucks, according to registration data from S&P Global Mobility. So a bit more than half.
It'd be safe to estimate, then, that Tesla likely sold something in the ballpark of 5,000-6,000 Cybertrucks in the second quarter if consumer trends held steady. It might even be getting marginally outsold by the F-150 Lightning and GM's electric pickups, rivals whose sales are also falling but weren't nearly as hyped as Musk's brainchild.
The company didn't respond to a request for comment.
But even in a hypothetical world where all of those 10,400 deliveries in the second quarter were Cybertrucks, Tesla would still be massively underperforming the expectations set by Musk, who told investors two years ago that he expected Tesla to be churning out 250,000 a year by 2025.
We're halfway through the year, and Tesla has barely hit a fraction of that.
What could possibly be holding Cybertruck sales back, apart from its $80,000-$100,000 price tag and the imminent erasure of EV tax credits?
Perhaps it's the oddball design.
Or the repeated recalls, including one for an exterior steel panel falling off while the truck is moving.
Or the roughly 200-mile real-world range reported by owners, rather than the 500-mile range that was initially promised.
Or the lack of the also initially-promised range extender, which quietly disappeared.
Or the vehicle's intractable affiliation with the world's wealthiest wannabe-oligarch.
Or maybe people fear dropping six figures on a 7,000-pound car that has become a symbol of the MAGA right wing and a target of vandalism.
Will the Cybertruck's shortcomings sink Tesla? Probably not. But the stumble has become a reflection of the company's broader turmoil.
The electric truck faces serious competition from the likes of Rivian, Ford and GM. Chinese rivals are eating into Tesla's market share in key markets overseas, particularly Europe and China.
Tesla is on the verge of losing its title as the world's largest EV maker by annual sales to Chinese automaker BYD. This week, BYD — which isn't allowed in the US market — reported 1 million electric vehicles sold in the first half of this year, putting it far ahead of Tesla's year-to-date total of about 721,000.
The Tesla faithful on Wall Street are still all-in on Musk, whom they see as a visionary and, perhaps more to the point, a showman who has made them rich.
Tesla's stock (TSLA) is down about 17% this year, but it's up nearly 300% over the last five years. For the ride-or-die bulls, it may not matter that Musk's MAGA turn has clobbered the company's core business of selling cars because he has convinced them that Tesla's future lies in an AI-powered, driverless utopia.
And it's Musk's history of promises that have driven that meteoric share price increase, and, accordingly, Musk's personal wealth.
But the longer Musk is at the helm, the more his promises and predictions seem to come up short.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chicago results: Shane van Gisbergen wins NASCAR Xfinity race
Chicago results: Shane van Gisbergen wins NASCAR Xfinity race

Yahoo

time39 minutes ago

  • Yahoo

Chicago results: Shane van Gisbergen wins NASCAR Xfinity race

Shane van Gisbergen passed JR Motorsports teammate Connor Zilisch for the lead with two laps to go to win Saturday's NASCAR Xfinity street race in Chicago. It is the second year in a row that van Gisbergen has won this event. Advertisement He is the sixth different driver to win this season for JR Motorsports. He won after starting on the pole and leading 27 of the 50 laps on the 12-turn, 2.2-mile street course. In the five races (Cup and Xfinity) run on the streets of Chicago, van Gisbergen has won three times. Zilisch finished second. He was followed by Sheldon Creed, Austin Hill and Nick Sanchez, giving him back-to-back top-five finishes for the first time in his career after his victory last weekend in Atlanta. Stage 1 winner: Shane van Gisbergen Stage 2 winner: Sheldon Creed Next: The series races at 4:30 p.m. ET Saturday July 12 at Sonoma Raceway.

Zilisch Thought Shane van Gisbergen Would Race Him 'Cleaner' for Xfinity Chicago Street Race Win
Zilisch Thought Shane van Gisbergen Would Race Him 'Cleaner' for Xfinity Chicago Street Race Win

Yahoo

timean hour ago

  • Yahoo

Zilisch Thought Shane van Gisbergen Would Race Him 'Cleaner' for Xfinity Chicago Street Race Win

Temporary Jr Motorsports teammates Shane van Gisbergen and Connor Zilisch started on opposite ends of the field in Saturday's NASCAR Xfinity The Loop 110, and they would finish within feet of each other after battling into turn one on the final restart. The Cup Series regular, van Gisbergen, would take the lead from his teammate on the restart with two laps to go. This was the first time the duo battled against each other, and Zilisch thinks that in the end, that was his downfall. Zilisch, after hitting the wall in practice and the subsequent adjustments, started at the back of the field. From last, according to the broadcast, he passed 123 cars on his way to the lead before the final restart that pitted him against van Gisbergen, who had just run back through the field after a bold strategy move didn't pay off. On the restart, Zilisch, who races full time in Xfinity, thought van Gisbergen, as a temporary and potential future teammate, would race him cleaner. "I thought he was going to race me a little bit cleaner," Zilisch told The CW Sports. Zilisch admitted that he could've held his ground more and not given up his inside on the entry to left-handed turn one. "I should have just not let him get to my bottom, I was clear there," Zilisch said. "I let him get to my inside, and he took advantage of it." The 18-year-old found himself in control of the race late as van Gisbergen took a different strategy call than the majority of the field, pitting twice and tumbling down the leaderboard as Zilisch ran through the pack. The two-lap dash was set when Andre Castro ended up in the Turn 6 tire pack, shortly before the caution Creed waived van Gisbergen who had much fresher tires for the teammate battle, also quite possibly to not record yet another second-place finish. Zilisch let van Gisbergen get to his inside because he wanted to protect his line into turn 2, expecting that his teammate wouldn't use him up the corner before. "I wouldn't consider it dirty at all. I could have just done a better job keeping leverage, but I let him get a nose ahead of me, and at that point, it's his corner and he can do what he wants to. I just didn't expect it, so I wish I could have it back," Zilisch told media members, including Road & Track. While Zilisch doesn't see van Gisbergen's move as dirty, he didn't expect it, and the young driver will change how he races against him in the future. Zilisch says that he'll be better prepared to race against van Gisbergen next week at Sonoma. "I look forward to racing him again at Sonoma," Zilisch said at the end of his CW interview. van Gisbergen became the sixth driver to win for JR Motorsports this year, with all four full-time drivers winning and Kyle Larson winning when he filled in for Zilisch at Texas Motor Speedway this spring. Sheldon Creed followed the Jr Motorsports drivers for a third-place finish. You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos

If EPS Growth Is Important To You, Objective (ASX:OCL) Presents An Opportunity
If EPS Growth Is Important To You, Objective (ASX:OCL) Presents An Opportunity

Yahoo

timean hour ago

  • Yahoo

If EPS Growth Is Important To You, Objective (ASX:OCL) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Objective (ASX:OCL). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Objective has managed to grow EPS by 21% per year over three years. So it's not surprising to see the company trades on a very high multiple of (past) earnings. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The music to the ears of Objective shareholders is that EBIT margins have grown from 28% to 32% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. See our latest analysis for Objective In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Objective's forecast profits? Prior to investment, it's always a good idea to check that the management team is paid reasonably. Pay levels around or below the median, can be a sign that shareholder interests are well considered. The median total compensation for CEOs of companies similar in size to Objective, with market caps between AU$611m and AU$2.4b, is around AU$1.7m. The Objective CEO received total compensation of just AU$215k in the year to June 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. If you believe that share price follows earnings per share you should definitely be delving further into Objective's strong EPS growth. Strong EPS growth is a great look for the company and reasonable CEO compensation sweetens the deal for investors ass it alludes to management being conscious of frivolous spending. We think that based on its merits alone, this stock is worth watching into the future. Of course, profit growth is one thing but it's even better if Objective is receiving high returns on equity, since that should imply it can keep growing without much need for capital. Click on this link to see how it is faring against the average in its industry. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in AU with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store