Shares of American electric vehicle producer Tesla shares fell nearly 5% as of mid-day trading Thursday amid increased speculation about a delay in production of its highly anticipated Cybertruck model, though an analyst said that the drop doesn’t have legs.
Tesla’s stock fell 4.7% to $1,054.48 as of 12:50 p.m. Thursday as investors reacted to news that Tesla removed mentions of a 2022 production date for the Cybertruck from its website in December, a change noticed by industry publications as early as last week before reaching a wider audience Thursday.
The drop in share prices is simply a “knee jerk reaction,” Daniel Ives, an equity analyst covering Tesla for Wedbush Securities, told Forbes on Thursday.
Ives believes there is reason to be optimistic about a 2023 production date for the Cybertruck, as he believes Tesla’s Gigafactory Texas facility in Austin, which is believed to be where Cybertruck production will eventually take place, will begin production on other vehicle models in the next week.
“Tesla stock is under a bit of pressure because of the Cybertruck delay reports. I view it more as noise because I think most Tesla investors expect this to be a 2023 event,” Ives told Forbes.
Musk debuted the futuristic-looking Cybertruck in November 2019 to a mixed-at-best reaction. His net worth fell by $768 million to $23.6 billion the day after the Cybertruck unveiling as Tesla shares plummeted 6%, according to Forbes’ calculations at the time. Musk’s net worth has recovered since, as his $272.1 billion fortune makes him the wealthiest person in the world, per Forbes’ most recent estimates.