Cybertruck’s run comes to an end as Musk kills off pricey pet project
Summary
Tesla chief executive Elon Musk announced on social media that the company will phase out Cybertruck manufacturing at its Texas facility next year. The automaker plans to transition production at the Gigafactory to different operations following the shutdown.
The Cybertruck failed to catch on with car buyers due to high prices and some notable recalls.
Our Take
The Cybertruck was never a big part of Tesla's numbers, so winding it down is more of a cleanup than a hit to revenue. The truck fell far short of its early sales targets and has been a weak seller for a long time. What matters for the stock today is the tape: TSLA dropped 10.8% on Thursday to $343.69, caught in the same AI and tech selloff that hit the whole Nasdaq, and closed just above the day's low of $338.15. Premarket it's up about 1.6% near $349.
Freeing up space at Gigafactory Texas for other products could be read as a positive over time, but right now TSLA is trading with the Nasdaq, not on Cybertruck news. Levels we're watching: $338 is the key support, and a break below it puts the 52-week low near $297 back in view. On the upside, $354 (the premarket high and the Oct. 16 close area) is first resistance, then $374, where Thursday's selloff started. If QQQ holds its bounce, TSLA has room to retest $354. If the market rolls over again, $338 is the level to respect.
Opinion of Tech & Money Press. Not financial advice.
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