The Tesla Cybertruck, which is arguably one of the most hyped-up vehicles in recent history, won\u2019t 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\u2019s shares.<\/p>\n
That\u2019s 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.<\/p>\n
It\u2019s a bold statement, seeing how the Cybertruck is about a week away from finally being delivered, and the internet hasn\u2019t 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.<\/p>\n
But while the statement about canceling Tesla\u2019s first-ever electric pickup is a stretch, to say the least, the financial analyst\u2019s other remarks aren\u2019t so far-fetched. \u201cTesla looks stuck in a slow lane for another 12-18 months, unable to capitalize on peer delays while European legacy OEMs launch $\/\u20ac25,000 EVs next year and Chinese carmakers set a new pace of shorter product cycles,\u201d Houchouis wrote in a note.<\/p>\n
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\u2019s 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.”<\/p>\n
Houchois added that instead of spending significant resources on the Cybertruck production ramp, the company should instead focus on \u201chigh volume global segments and supply of 4680 for Model Y.\u201d<\/p>\n