Tesla (TSLA) appears to be edging closer to launching its highly anticipated Cybertruck, with Chief Executive Officer Elon Musk posting an image of the vehicle “production candidate” on X, formerly known as Twitter, Wednesday afternoon. TSLA gained ground in market trade.
Musk posted an image of himself in the Cybertruck at the EV giant’s Texas factory on Wednesday. Tesla stock gained 1.6% to 236.86 during Wednesday market trading.
“Just drove the production candidate Cybertruck at Tesla Giga Texas!” Musk wrote on X. Elon Musk added in a separate post that he believes the Cybertruck is Tesla’s “best product ever.”
In April, Musk teased a Cybertruck delivery event at the end of the third quarter.
Cybertruck ‘Remains On Track’
During the company’s presentation of its Q2 earnings and revenue, Elon Musk confirmed a Cybertruck delivery event will take place later in 2023.
Tesla reported in its Q2 financials that the Cybertruck “remains on track to begin initial production later this year at Gigafactory Texas.” However, the EV giant added it is “testing Cybertruck vehicles around the world for final certification and validation.”
“We can’t wait to start delivering it later this year,” Musk told investors in late July, referring to the Cybertruck.
There are few technical specs known about the vehicle. However, Kelley Blue Book estimates the starting price will be around $50,000. Tesla has touted stats including 500 miles of range, payload capacity of 3,500 pounds and a 14,000-pound load rating for the Cybertruck.
But it’s not clear what the Cybertruck’s actual specs and prices will be.
Tesla Stock Action
TSLA shares eased in early trade before reversing higher Wednesday. The stock is almost 11% higher for the week — after a three-week slide.
Shares had initially pulled back after the automaker reported second-quarter financials on July 19. Investor concerns over falling gross margins outweighed the global EV giant’s above-forecast earnings and revenue. News of sales from Cathie Wood’s ARK Invest ETFs may also have fueled some downside momentum.
Tesla stock declined more than 11% to 215.49 last week in six consecutive losses. Two weeks ago, Tesla stock undercut support at the stock’s 50-day moving average. TSLA then fell more than 2% below the 10-week line, a clear sell signal, according to IBD analysis.
Shares roared back more than 7% Monday. On Tuesday, an early 4% gain put TSLA stock above its short-term 10-day moving average. Shares pulled back to a 0.8% advance, closing effectively even with the 10-day line.
Tuesday’s rally petered out at 240 — the level of TSLA’s late-June low. The 240 level is also just below the sliding 21-day exponential moving average. TSLA stock is still well below the 50-day line.
So any or all of these could be presenting resistance to the stock’s rebound. That could mean a longer period of consolidation. It also sets up the possibility for a powerful punch through that combined resistance and move shares higher.
Keep in mind that the stock market remains in a correction. Monday’s advance marked the beginning of a rally attempt.
Investors should be playing defense with their capital and wait for a decisive move by Tesla stock — at least back above the 21-day, and preferably above the 50-day moving average, before considering a new purchase.
Tesla stock ranks fourth in IBD’s automaker industry group. It has a 95 Composite Rating out of 99. Tesla stock has an 88 Relative Strength Rating and its EPS Rating is 94 out of 99.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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