Tesla Analyst Urges Cybertruck Cancellation As EV Maker Looks 'Stuck In Slow Lane' For Next 12–18 Months
Portfolio Pulse from Shanthi Rexaline
Jefferies analyst Philippe Houchois suggests Tesla should cancel the Cybertruck to refocus on core strengths and simplicity. He maintains a Neutral rating on Tesla but cuts the price target from $250 to $210, citing a slow growth period for the next 12-18 months. Houchois lowers Tesla's EBIT and free cash flow estimates for 2023 and 2024, but notes positives like Model 3 refresh, easing China pressure, and potential expansion at Giga Berlin. Tesla shares were down 0.4% to $233.15.
November 20, 2023 | 5:49 pm
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NEUTRAL IMPACT
Tesla analyst Philippe Houchois mentions BYD Co. Ltd. as one of the global low-cost EV producers alongside Tesla in the long term.
BYD Co. Ltd. is mentioned as a potential long-term low-cost EV producer, which is a neutral statement and does not directly impact the short-term stock price.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Stellantis N.V. is recognized by Tesla analyst Philippe Houchois as a potential global low-cost EV producer in the long term.
Stellantis N.V. is mentioned in the context of long-term EV production cost leadership, which is a neutral comment with no immediate impact on the stock price.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Toyota Corp. is noted by Tesla analyst Philippe Houchois as one of the few global low-cost EV producers in the future.
Toyota Corp. is mentioned as a future low-cost EV producer, which is a neutral perspective and unlikely to affect the stock price in the short term.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEGATIVE IMPACT
Analyst Philippe Houchois suggests Tesla cancel the Cybertruck, citing it as a drag on profit and a diversion of resources. He maintains a Neutral rating but cuts the price target from $250 to $210, expecting slow growth for Tesla.
The recommendation to cancel the Cybertruck and the reduction in price target by a notable analyst could negatively impact investor sentiment and Tesla's stock price in the short term. The lowered EBIT and free cash flow estimates further support a potential negative impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100