Tesla Analysts Groan At Cybertruck's Final Pricing, Warn Of $10K Loss Per Vehicle At Current Production Rate
Portfolio Pulse from Shanthi Rexaline
Analysts are expressing concerns over the pricing of Tesla's Cybertruck, suggesting the company could be losing $40,000 per vehicle at current production levels. Gene Munster of Deepwater Asset Management and Gary Black of Future Fund both indicated that the pricing is higher than expected, with Munster comparing it unfavorably to Ford's F-150 Lightning. However, both analysts acknowledge the strategic rationale behind the higher prices due to limited production capacity. Munster predicts Tesla will produce 35,000 units in 2024 and sees potential for price reductions and increased production in the future. Wedbush analyst Daniel Ives maintains an Outperform rating and $310 price target on Tesla, expecting a slower ramp-up to cash-flow positive status for the Cybertruck. Tesla shares dropped slightly in premarket trading.
December 01, 2023 | 11:30 am
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NEGATIVE IMPACT
Analysts are concerned about the high pricing of Tesla's Cybertruck, which could lead to significant losses per vehicle at current production rates. However, the strategic pricing may help manage demand with limited production capacity.
The negative sentiment from analysts regarding the Cybertruck's pricing and potential losses per vehicle could lead to bearish investor sentiment in the short term. However, the strategic rationale behind the pricing could mitigate some concerns.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Ford's F-150 Lightning is mentioned as a competitor to Tesla's Cybertruck, with each version priced around $10,000 lower than Tesla's offering.
While Ford is mentioned as a competitor with lower pricing for its electric truck, the article does not provide enough information to determine a clear short-term impact on Ford's stock.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50