Following the highly anticipated unveiling of its Cybertruck, Tesla shares (TSLA.O) saw a decline of around 2% on Friday. This was because analysts were concerned about the considerable price tag of the electric vehicle as well as the longer wait for significant financial rewards.

The Cybertruck, which has been delayed for a long time, has a beginning price of $60,990, more than fifty percent higher than CEO Elon Musk had predicted for the year 2019. Analysts believe that this price would attract consumers who are quite wealthy.

According to a note from Wedbush, “Cybertruck does not significantly move the financial needle for Tesla in FY24.” On the other hand, Bernstein analysts anticipated 250 deliveries for this year and 75,000 deliveries for the next year, stating that both of these numbers “may be ambitious.”

Tesla is expected to attain a manufacturing pace of around 250,000 Cybertrucks per year by the year 2025, according to statements made by Musk. The company has issued numerous warnings that it would face significant obstacles in ramping up the product and becoming free cash flow positive, which will most likely not happen until the middle of 2025. This might have a detrimental influence on the company’s profitability.

“Tesla has a product problem—i.e., an older line-up that does not address enough of the market and has no new mass market offerings until likely late 2025,” according to Bernstein analysts.

Because the Cybertruck is Tesla’s first new model in almost four years, it is essential to the firm’s reputation as a manufacturer of innovative cars. This is especially true when the company struggles to compete with increased competition and a decreasing market for electric vehicles.

With a market price of $235.45, Tesla was expected to suffer a loss of almost $15 billion on Friday. According to the data provided by LSEG, it is presently trading at around 65 times its yearly profit projections for the next 12 months.

The stock has seen a decline of more than 65 percent in 2022 but nearly doubled in value this year.

To compete with other pickup trucks such as Ford’s (F.N.) F150 Lightning, Rivian Automotive’s (RIVN.O.) R1T, and General Motors (GM.N.) Hummer EV, the Cybertruck, has been delayed by two years. It is now entering a market that is competitive with pickup trucks.

“Cybertruck is more of a ‘halo’ product, in our view, to attract consumers to the brand for the mainstream vehicles Model 3 and Model Y,” said Tom Narayan, an analyst at RBC Capital Markets. “They are trying to attract customers to the brand.”