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Historical precedence suggests that Cybertruck’s launch could significantly elevate Tesla’s vehicle volumes. Black estimates that 2024 volumes could increase over 50%, surpassing the Street’s consensus of a 27% growth rate. This would help Tesla beat expectations and sustain its stock rally.
3. Margin Improvements and No Further Price Cuts
Black anticipates that gross margins will bottom out soon, especially as no additional price cuts are expected, and margins may even start to increase with the Cybertruck’s higher-margin sales. He notes that Tesla has yet to utilize paid advertising, and any expansion into marketing could further boost demand.