Tesla nears a major breakout as it releases the Cybertruck

Key Points

• Tesla finally delivered its long-awaited Cybertruck, marking a significant milestone four years after CEO Elon Musk unveiled the futuristic electric vehicle.
• The Cybertruck's unique design features set it apart from Tesla's existing vehicle lineup.
• Tesla's stock is approaching a potential breakout, with technical indicators suggesting the possibility of upward momentum.

The day has finally arrived for Tesla NASDAQ: TSLA and its cult-like following. Later today, the company is set to deliver its first batch of the eagerly anticipated and long-awaited Cybertruck. This event marks a milestone for the company four years after the CEO, Elon Musk, first introduced the futuristic-looking electric vehicle. 

What's also worth noting is where shares of Tesla are trading coming into the event. TSLA is trading in the upper region of its 52-week range and recently broke out of a 3-week consolidation on the daily chart. Zooming out, you'll notice that the stock recently traded into its downtrend resistance, around $252, a key area to watch for going forward. 

So, as Tesla nears a potential breakout, with a significant company event due to take place later today, it's worth taking a closer look at recent developments. 

Tesla releases its long-awaited Cybertruck today

The first batch of deliveries is due to take place at Tesla's Texas Gigafactory. The Cybertruck, initially set for production in 2021, faced delays due to the pandemic but finally emerged in July.

The Cybertruck signifies Tesla's entry into the lucrative full-sized pickup truck market within EVs. As consumer interest in EV pickups rises, Tesla aims to diversify its vehicle lineup, anticipating increased consumer adoption of electric vehicles in the coming years.

Distinguished from Tesla's sleek sedans, the Cybertruck boasts impressive features: it can tow over 14,000 pounds and accelerate from 0 to 60 mph in less than 3 seconds. Its stainless steel alloy body and "armor glass" windows lend it a futuristic, cyberpunk aesthetic.

While the Cybertruck may not significantly impact Tesla's finances in 2024, it solidifies the company's innovative edge and market leadership, leaving competitors trailing in innovation and consumer appeal, according to analysts at Wedbush Securities.

Analysts remain mixed on TSLA

While analysts have been vocal in sharing their opinions as the event approaches, it hasn't been enough to move the needle on Tesla's consensus rating. As has been the case consistently over the previous year, the stock maintains a Hold rating based on 35 analyst ratings. Tesla has a price target of $232.53, which predicts almost 5% downside for the Automotive stock. 

Recently, however, Wedbush reiterated its rating on Tesla as Outperform and maintained its $310 price target, which calls for over 30% upside for the stock. Among the consensus price targets, Tesla has a high prediction of $380 and a low prediction of $85.

Tesla edges toward breakout level as the Cybertruck event nears

With Tesla's stock surging almost 20% over the previous month, Tesla bulls will hope that today's Cybertruck event doesn't trigger a sell-the-news scenario. 

From a technical analysis perspective, the stock could benefit from a slight pullback and a higher low above the recently reclaimed 50-day Simple Moving Average, indicating buyers are stepping higher. Such a move also allows the stock to regain some energy before a possible leg higher.

If the stock can confirm a higher low above the 50-day SMA or break above the significant resistance level on increased volume, then momentum and further upside over $260 might be the likeliest of outcomes.