The Cyber Rodeo may be over, but Tesla (NASDAQ:TSLA) already has more news to excite fans. This week, the company kicked things off by allowing buyers to reserve the Tesla Roadster. While the vehicle isn’t in production yet, consumers can now reserve their own Roadster on the company’s website. News of this step forward hasn’t pushed TSLA stock up yet, but this is only the start.
After a week of riding high on momentum generated by the Cyber Rodeo, Tesla seems to be cooling off. While the electric vehicle (EV) innovator rallied this morning, TSLA stock is still down nearly 5% for the day as of this writing. These declines are likely due to news of further Covid-19 restrictions in China; March brought the first decline in sales for the massive Chinese EV market in months.
This type of momentum isn’t great, but it’s nothing Tesla can’t overcome. The company has plenty of good news on the horizon that investors should be focused on.
What’s Happening with TSLA Stock?
It’s no secret that Tesla fans have wanted to see the Roadster hit the streets for years. The EV initially debuted in 2017 but saw ensuing delays. Last week at the Cyber Rodeo, however, CEO Elon Musk said that 2023 would bring a “massive wave of new products.” Then, just days later, Tesla opened up Roadster reservations on its site.
It’s hard not to admire this car’s sleek, innovative design. But what may be just as enticing to buyers is that the model is apparently “the quickest car in the world, with record-setting acceleration, range and performance.” Tesla already ushered in a new wave of transportation by bringing EVs to the mainstream. Now, it’s gearing up to deliver the sports car of the future.
Of course, there are plenty of details about the Roadster still emerging. While the base reservation fee is $50,000, customers still don’t know the exact price of the EV. The model showed off by Musk in 2017 costed $200,000. Factoring in current inflationary trends, it’s safe to assume prices will be higher in 2023.
That said, what investors do know is that, as 2023 draws near, enthusiasm for the Roadster will skyrocket. New product hype has been a great driver for TSLA stock before. Last week, for example, the stock popped after Musk mentioned the Cybertruck at the Austin, Texas Cyber Rodeo event.
What It Means
Details are still coming to light, but that may work in the favor of investors. While Tesla enthusiasts watch and wait for updates on the Roadster, TSLA stock will likely rise on the momentum. Confirmation that the vehicle has entered production will send it up even further. All told, the opening of Roadster reservations means investors have several catalysts to look forward to.
Focus today is on the Roadster, but it’s also slated to arrive around the same time as the Tesla Cybertruck. Both vehicles will send TSLA stock up in the months ahead and into 2023. True, we’ve seen delays from Tesla before. But as Musk touted at the Cyber Rodeo, the company has more space than ever to scale production.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.