To Avoid a Massive Financial Hit, Tesla is Likely to Deliver the First Cybertrucks to Its Employees
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
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. Against this turbulent backdrop, it would make sense for Tesla to save every possible dime and opt to deliver Cybertrucks to its employees in 2023 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.
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The first Cybertruck delivery to a regular customer will trigger around $400M in additional COGS for that quarter. That's -$0.11 EPS. Therefore, it's likely that all deliveries this quarter will be to employees.
The same happened with the Model 3: https://t.co/8NuNnb72Ga pic.twitter.com/MJFueJiLZB
— Troy Teslike (@TroyTeslike) November 17, 2023
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
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