Tesla (TSLA) appears to be moving closer to the launch of the much-anticipated Cybertruck, with Chief Executive Officer Elon Musk posting an image of the vehicle’s “production candidate” on X, formerly known as Twitter, on Wednesday afternoon. TSLA gained ground in the market trade.
Musk posted a photo of himself in the Cybertruck at the EV giant’s Texas factory on Wednesday. Shares of Tesla rose 2.1% to 238.10 during market trading on Wednesday.
“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 course’
During the company’s Q2 earnings and revenue presentation, Elon Musk confirmed that a Cybertruck delivery event will be held later in 2023.
Tesla reported in its second-quarter financials that the Cybertruck “remains on track to begin initial production later this year in Gigafactory Texas.” However, the EV giant added that it is “testing Cybertruck vehicles around the world for final certification and validation.”
“We can’t wait to start shipping it later this year,” Musk told investors in late July, referring to the Cybertruck.
Few technical specifications are known about the vehicle. However, Kelley Blue Book estimates the starting price will be around $50,000. Tesla has touted stats including a 500-mile range, 3,500-pound payload and 14,000-pound carrying capacity for the Cybertruck.
But it’s not clear what the actual specs and pricing of the Cybertruck will be.
Tesla stock action
TSLA shares fell in early trading before reversing a higher price on Wednesday. The stock is up nearly 11% this week — after a three-week decline.
Share prices had initially fallen after the automaker reported second-quarter financials on July 19. Investor concerns about declining gross margins outweighed the global EV giant’s above-expected earnings and sales. News of the sale of Cathie Wood’s ARK Invest ETFs may also have provided downside momentum.
Shares of Tesla fell more than 11% to 215.49 last week after six consecutive losses. Two weeks ago, Tesla stock undermined support on 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 rose more than 7% on Monday. On Tuesday, an early 4% gain propelled TSLA stock above its short-term 10-day average. Shares retreated to gain 0.8% and effectively closed even within the 10-day line.
Tuesday’s rally ended at 240 – the level of TSLA’s late June low. The 240 level is also just below the moving 21-day exponential moving average. TSLA shares are still well below the 50-day mark.
Thus, one or more of these factors could resist the equity recovery. That could mean a longer period of consolidation. It also creates the opportunity for a powerful blow through that combined resistance and to take the stock higher.
Keep in mind that the stock market is still in a correction. Monday’s advance marked the start of a rally attempt.
Investors should defend their capital and wait for a decisive move in Tesla shares — at least back above the 21-day, and preferably above the 50-day moving average — before considering another purchase.
Tesla stock ranks fourth in IBD’s automaker group. It has a composite rating of 95 out of 99. Tesla stock has a relative strength rating of 88 and its EPS rating is 94 out of 99.
Follow Kit Norton on Twitter @KitNorton for more coverage.
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