The first handful of Cybertrucks are being delivered to customers this month reigniting optimism that Tesla’s (TSLA:NASDAQ) long-awaited flatbed electric vehicle can spark the shares beyond $280 2023 highs.

Tesla investor and managing partner of the US-based Future Fund, Gary Black, remains optimistic about demand for the Cybertruck, countering the scepticism from some market analysts. Black expressed his confidence through a post on X, the former Twitter, stating ‘consumer interest in Cybertruck is insane’.

He downplayed concerns about some customers cancelling their reservation deposits, emphasising that a substantial number are still eager to expedite their deliveries. According to Black, the Cybertruck is poised to have a positive ‘halo’ effect on Tesla’s entire line-up, similar to the impact of the Model Y launch in 2020.

The fund manager highlighted that the Model Y launch led to a substantial increase in volume growth from 36% in 2020 to 87% in 2021, resulting in a seven-fold surge in Tesla’s stock.

Unveiled in 2019, the Cybertruck took its time getting here, slogging its way through a global pandemic, a presidential election, two ongoing wars, and many other challenges over four years. But there are sceptics that believe Tesla is facing a vastly different world than it did in 2019, dominated by higher interest rates, pressure on consumer budgets and plummeting profit margins, factors that have eaten away at investor confidence.

Since peaking at $293.34 in July this year, Tesla shares have lost around 20%, wiping around $250 billion off the market cap and falling out of the exclusive trillion-dollar club.

Black is hopeful that Cybertruck can ignite a reversal of fortune through 2024, estimating Tesla delivering 100,000 vehicles and 250,000 in 2025, as predicted by Tesla CEO Elon Musk himself. By 2027, Tesla will deliver 600,000 Cybertrucks, Black believes.

Assuming an average selling price of $60,000 among other factors, Black estimates 2017 sales will add $1 per share to earnings and up to $40 a share in future stock price value. The Wall Street estimates, however, are less optimistic. They imply Cybertruck deliveries of around 270,000, or less than half of Black’s estimates, in 2027.

Despite initial concerns on Wall Street regarding the Cybertruck’s high pricing and fears of it becoming a niche product rather than a mass-market success, Black contends that a volume ramp-up and subsequent price cuts will prove these estimates wrong.

He believes that the Cybertruck’s potential to expand Tesla’s total addressable market to the pickup segment, a space so far untapped by Tesla and constituting approximately 20% of all US vehicles sold, is being underestimated. This, coupled with the forthcoming $25,000 Model 2, positions Tesla as the only investable pure-play electric vehicle company, in Black’s view.

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