Tesla
has another model it’s about to ship—sort of. However, it’s all a fun diversion from what investors really want for Christmas: Cybertruck deliveries.
Just in time for the holidays, the Cyberquad for kids is once again for sale on Tesla’s website. Made by Radio Flyer, the toy vehicle includes a rechargeable battery and an electric motor. It’s designed a little like the coming Tesla (ticker: TSLA) Cybertruck, with its grey color and multi-angled exterior.
“Radio Flyer continues partnership with auto-industry titan,” said the toy maker in an emailed statement.
This isn’t the first iteration of the Cyberquad: The youth-sized vehicle appeared in 2021 for $1,900. The toy’s price is still the same, while the costs of many other consumer goods have soared in the past couple of year. Take the average transaction price for a new car in the U.S., which is about $48,000 right now, according to Kelley Blue Book. In December 2020 and 2021, it was about $41,000 and $47,000, respectively.
This Barron’s reporter bought a Cyberquad in 2021, believing it would make for a good story (and some fun for the kids). Perhaps it could have even been flipped for a profit. The original Cyberquad sold out quickly, signaling strong demand and limited supply.
The toy didn’t make it in time for Christmas 2021. It arrived in March.
It was also never flipped, because Radio Flyer recalled the original model for a few issues, such as noncompliance with mechanical suspension standards.
The end result was a full refund. That was a pretty good outcome for about eight months of taking up space in the garage.
The second batch of Cyberquads comes just before Tesla is slated to begin shipping its Cybertruck to customers, with a delivery event planned for later this month. It’s Tesla’s newest vehicle since the Model Y started shipping in 2020.
CEO Elon Musk has said that the truck is difficult to make, but the technology behind it is mind-blowing. Production challenges will mean there won’t be enough Cybertruck volume in 2023 or early 2024 to boost Tesla’s overall profit margins, but investors will be watching for that new technology, consumer reception—and to see if the emergence of the oddly-shaped truck on roads helps sell other Tesla models.
Tesla stock was up 2.7% in afternoon trading Wednesday, while the
S&P 500
was up 0.3% and the
Nasdaq Composite
was up 0.2%.
The Cyberquad isn’t a likely reason. Still, Tesla stock is trying to extend its three-day winning streak. At about $244 a share, Tesla stock is below where shares opened in October, before weak deliveries and weak third-quarter earnings shook investor confidence.
Investors are looking for Cybertruck production and deliveries to help buoy their concerns. Hopefully, the truck launch goes smoother than that of the original Cyberquad.
Write to Al Root at [email protected]
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