Deliveries of the first vehicles are expected on November 30
The Tesla Cybertruck, which is one of the most hyped vehicles in recent history, won’t do much good for Tesla, at least in the short term, and its cancellation would actually be good for the company’s stock price.
This opinion was expressed by Jefferies Group analyst Philippe Houchois after lowering his target price for Tesla shares to $210 per share, citing lower earnings and free cash flow estimates. Let us remind you that there is about a week left before the first deliveries of the Cybertruck, although there will be only 10 vehicles in the starting batch.
Tesla should cancel the Cybertruck – it would have a positive effect on the stock price.
“The cancellation of the Tesla Cybertruck would be positive for the stock. Tesla looks set to be stuck in slow motion for another 12-18 months, unable to capitalize on the delays, while European OEMs launch €25,000 electric vehicles next year and Chinese automakers set a new pace for shorter production cycles products,” Houchua wrote in his article.
Previously, Elon Musk said the following: “I just want to temper expectations for the Cybertruck. It’s a great product, but from a financial perspective it will take a year to 18 months before it starts generating significant positive cash flow.”
Houchua added that instead of spending significant resources on Cybertruck production, the company should focus on “large volume global segments and supply of 4680 battery cells for Model Y.”
