To Avoid a Massive Financial Hit, Tesla is Likely to Deliver the First Cybertrucks to Its Employees

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When it rains, it pours. This idiom is doubly true for Tesla, which is not only contending with a persistent sales slowdown but also a full-fledged PR nightmare amid accusations of anti-Semitism against Elon Musk. Amid this turbulent backdrop, it would make sense for Tesla to save every possible dime and opt to deliver Cybertrucks to its employees initially to avoid a sizable financial hit in the ongoing quarter.

Tesla is slated to begin delivering its much-delayed Cybertruck later this month. Ahead of this seminal development, the company has spent quite a lot of time tempering expectations, with Elon Musk himself noting during the third-quarter earnings call that volume production of the electric pickup truck would probably only materialize in 2025.

Even so, the initial deliveries of the Cybertruck are expected to go to Tesla’s own employees. As per an analysis by Troy Teslike, as soon as Tesla makes its first Cybertruck delivery to a regular customer, it would have to recognize $400 million in additional Cost of Goods Sold (COGS), corresponding to an EPS impact of around -$0.11. Naturally, given the multitude of headwinds that the EV giant faces in its ongoing quarter, it would likely seek to avoid this cost recognition by making the initial deliveries to its own employees.

Tesla’s Mounting Woes

Meanwhile, Tesla has conceded that it is currently between “two major growth waves.” The company has routinely guided that its annual production would grow by 50 percent for the foreseeable future. However, Wall Street currently expects the EV giant to grow its production by 37 percent in 2023 and 22 percent in 2024 in the absence of a sizable Cybertruck-related tailwind.

Additionally, as we reported recently, Tesla has just settled an FSD-related lawsuit, opening a whole new can of worms for the EV giant, especially in the UK. This is all the more troubling given that a recent study ranked Tesla’s autonomous driving-related efforts at the bottom.

Finally, it seems that Elon Musk has opened another front for Tesla by responding in the affirmative to an X post that accused the Jewish communities of pushing “dialectical hatred” against the whites.

On a brighter note, it appears that Tesla’s demand woes in China appear to be waning, given renewed expectations of a price increase as soon as next week.

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