Tesla, Inc. TSLA is slightly over a week away from the unveiling of its widely anticipated Cybertruck, yet analysts have overlooked the electric pickup truck.Thank you for reading this post, don't forget to subscribe!
What occurred: Tesla’s CEO Elon Musk responded to Jefferies analyst’s controversial comments on Monday about Cybertruck. When a Tesla influencer shared a story summarizing the analyst’s comments, the billionaire reacted with a joker emoji.
So, what propelled Musk to react? The analyst labeled Cybertruck as an “off-mission product” being introduced at a time when the company seems to be on a “slow path” for at least the next 12-18 months. Analysts already consider 2024 a “lost year” from a growth perspective. According to the analyst, canceling the Cybertruck will help Tesla refocus on its “advantages built on simplicity, scale and speed.”
Tesla enthusiasts also voiced their disapproval. One of them asked if Houchois was working for GM or Ford. Another chimed in and said, “This will go down as one of the worst calls made by an analyst in the history of modern investing.”
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why is it important: Despite skepticism about the Cybertruck, Houchois mentioned he is optimistic about Tesla’s long-term potential. In the long run, Tesla will be one of a handful of global low-cost producers and will benefit from continued growth in battery electric vehicle adoption, he said.
The analyst maintained his Neutral rating on Tesla stock and reduced his 12-month price target to $210 from $250, citing lower EBIT and free cash flow expectations for 2024 and 2025.
Deepwater Asset Management gene munster expressed in his preview of the Cybertruck launch that he was more concerned about capacity and thus projects only very modest incremental growth from the vehicle.
Reports also indicate that Tesla may only deliver a few Cybertrucks at the launch event on November 30. Meanwhile, Martin Wiecha, Tesla’s vice president of investor relations, X, previously mentioned on Twitter that a second batch of retail investor invitations for the Cybertruck delivery event has just been sent out.
Tesla concluded Monday’s session up 0.55% at $235.60, according to Benzinga Pro data.
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