As the Cybertruck launch event fast approaches, an analyst at Jefferies says cancelling the electric pick-up truck could prove to be positive for Tesla shares.
The Tesla Analyst: Philippe Houchois maintained a Neutral rating on Tesla and reduced the price target from $250 to $210.
The Tesla Thesis: “With 2024 already a lost year for growth,” a Cybertruck cancellation would help Tesla refocus on an “edge that was built on simplicity, scale and speed,” Houchois said in a note published on Monday.
The analyst called it “climbing out of self-drug holes.” Cybertruck is an “off mission” product, he said. Laying out his case, the analyst said the EV will only bring in modest incremental growth, produce no manufacturing leverage and serve as a drag on profit and cash.
The EV pickup truck may have diverted resources from high-volume global segments and supply of 4680 cells for Model Y, he said.
The Cybertruck is a double negative on ...