Financial Analyst Says Tesla Should Cancel The Cybertruck
Nov 21, 2023
The Tesla Cybertruck, which is arguably one of the most hyped-up vehicles in recent history, won’t do too much good for the Elon Musk-led EV manufacturer, at least in the short term, and canceling it would actually be good for the company’s shares.
That’s what Jefferies analyst Phillipe Houchois said after cutting the price target to $210 per share on Tesla stock citing reduced earnings and free cash flow estimates.
It’s a bold statement, seeing how the Cybertruck is about a week away from finally being delivered, and the internet hasn’t been too kind to the financial analyst, as you can see for yourself in the comments to the X post embedded below, posted by Sawyer Merritt.
But while the statement about canceling Tesla’s first-ever electric pickup is a stretch, to say the least, the financial analyst’s other remarks aren’t so far-fetched. “Tesla looks stuck in a slow lane for another 12-18 months, unable to capitalize on peer delays while European legacy OEMs launch $/€25,000 EVs next year and Chinese carmakers set a new pace of shorter product cycles,” Houchouis wrote in a note.
This goes hand in hand with what Musk said during the third-quarter earnings call last month. “I just want to temper expectations for Cybertruck,” Tesla’s CEO said. “It’s a great product, but financially, it will take a year to 18 months before it is a significant, positive cash flow contributor. I wish there was some way to be different but that’s just my best guess.”
Houchois added that instead of spending significant resources on the Cybertruck production ramp, the company should instead focus on “high volume global segments and supply of 4680 for Model Y.”
Source:Financial Analyst Says Tesla Should Cancel The Cybertruck (insideevs.com)
