Fans of the Tesla (NASDAQ:TSLA) Cybertruck received an exciting announcement last week. Electrek reported that the electric vehicle leader has purchased “the world’s largest casting machine,” the Giga Press. CEO Elon Musk also confirmed the company will use the machine to produce Cybertrucks.
TSLA stock is up today, but it doesn’t seem to have much to do with this Cybertruck news. Rather, broad market forces are working in favor of shares. Specifically, Amazon’s (NASDAQ:AMZN) stock split has generated significant momentum for the tech sector. TSLA stock has also climbed on retail investor interest.
Despite falling earlier today, shares are currently up more than 1%. This is a more reassuring performance than last week, when Tesla plunged about 9%.
However, overshadowed by bigger news, investors shouldn’t overlook the new Cybertruck progress. It may mean big things for the future of the company.
What’s Happening with TSLA Stock?
When Elon Musk announced at the Cyber Rodeo that Cybertruck production would start in 2023, TSLA stock immediately popped. The heavy-duty EV has captured the interest of investors and auto enthusiasts alike since Tesla debuted the design in 2019. Competitors have produced similar vehicles since, but even General Motors’ (NYSE:GM) EV Hummer hasn’t generated the same attention despite positive reviews.
This isn’t the first time Tesla has ordered a Giga Press. In February 2021, the company drew attention when it tweeted a video of a 6,000 ton casting machine. The press was the largest of its kind at the time.
World’s biggest die casting machine pic.twitter.com/MegnFPKQfh
— Tesla (@Tesla) February 5, 2021
Tesla’s new Giga Press is approximately 9,000 tons. Tech Times reports that Musk has also confirmed the new machine will be used to produce bodies for the Cybertruck.
When Tesla first tweeted about its 6,000 ton press, it noted how the machine streamlines production. The first Giga Press allowed Tesla to start producing single front and rear bodies for the Model Y, replacing some 70 parts previously. The popular EV is now made with “both front and rear single-piece casting.”
What It Means
Tesla is clearly mastering this new aspect of EV manufacturing. Now, it’s poised to apply Giga Press tech to a bigger and more exciting vehicle that will help keep Tesla at the front of the EV race.
This new development is important for one key reason; it suggests the company is on track to start Cybertruck production by 2023. Tesla’s history with deadlines is far from perfect. Successfully meeting an important one would show investors it’s on top of production goals — an excellent boon for TSLA stock. Further news of Cybertruck progress may also generate social media hype and keep shares elevated.
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.
