Tesla, Inc.‘s (NASDAQ:TSLA) price cuts and ensuing fundamental challenges, compounded by economic uncertainty, have led to cautious investor sentiment, causing the stock to trade considerably below its yearly highs. However, Cathie Wood‘s Ark Investment Management has reiterated its optimistic outlook on the company.
Cybertruck Stirs Concerns: Tesla CEO Elon Musk’s reference to potential difficulty in the production ramp-up of the Cybertruck was one of the reasons that put off investors. Tasha Keeney, Ark’s Director of Investment Analysis & Institutional Strategies, does not attach much significance to it.
In the firm’s weekly “Ark Disrupt” innovation newsletter, the analyst said Tesla has had experience with difficult volume production ramps. The Model X was “notoriously over-engineered,” and the ramp of the Model 3 was nothing short of "production hell,” she noted.
Investors were caught off guard, as despite the simple cost-effective design the company promised initially, the Cybertruck is apparently facing manufacturing complexity, Keeney said. “With parts unlike those in any other Tesla model, its costs ...