Tesla, Inc. TSLA is a little more than a week away from the launch of its widely publicized Cybertruck, but analysts have ignored the electric pick-up truck.
What happened: Tesla CEO Elon Musk The Jefferies analyst had a blasphemous response. Philippe Houchois’ 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 drove Musk to the top? The analyst called Cybertruck an “off-mission product” that is being launched at a time when the company appears 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, the Cybertruck cancellation will help Tesla refocus on its “advantages built on simplicity, scale and speed.”
Tesla fans also expressed 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 said he is positive 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 lowered 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 Said in his preview of the Cybertruck launch that he was more concerned about capacity and as a result he is projecting only very modest incremental growth from the vehicle.
Reports also suggest that Tesla may only deliver a handful of Cybertrucks at the launch event on November 30. meanwhile, Martin Wiecha, Tesla’s vice president of investor relations, X, previously said on Twitter that a second batch of retail investor invitations for the Cybertruck delivery event have just been sent out.
Tesla closed Monday’s session up 0.55% at $235.60, according to Benzinga Pro data.
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