Tesla is facing significant challenges after reporting a concerning 13 percent drop in first-quarter deliveries, the impact of which is attributed primarily to damage to its brand caused by CEO Elon Musk's controversies. Gene Munster from Deepwater Asset Management indicates this decline could lead to an annual drop of 9 percent in deliveries, equating to roughly 80,000 lost units. The high-profile Cybertruck, although heavily marketed, has shipped fewer units than promised, further frustrating investors seeking a more affordable alternative. As confidence wanes, key stakeholders express doubts over Tesla's future growth.
Musk made a big and brash gamble with the Cybertruck, a heterodox pickup truck with bold styling and an exorbitant price tag. And less than 50,000 of them have actually shipped.
I estimate brand damage cost Tesla around 80k deliveries in the quarter, which will likely deteriorate further this quarter, according to Gene Munster.
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