Tesla Bull Calls Cybertruck 'Niche Product': 'Demand Will Be Limited … Until Pricing Comes Down'
Portfolio Pulse from Chris Katje
Gene Munster of Deepwater Asset Management commented on Tesla's Cybertruck pricing, stating it's 25% higher than expected, which may limit demand until prices drop. He noted the Cybertruck's steel frame could set a new standard for durability. Despite the high price, Munster believes the Cybertruck reinforces Tesla's lead in EVs. He predicts a decline in the waitlist from over one million to below 500k in six months. Tesla aims for 250,000 annual Cybertruck units by 2025, with Munster estimating 35,000 deliveries in 2024. Tesla shares were down 1% on Monday.
December 04, 2023 | 6:47 pm
News sentiment analysis
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NEUTRAL IMPACT
Tesla's Cybertruck is priced higher than expected, which may limit short-term demand. However, its advanced features could strengthen Tesla's position in the EV market. The high price could lead to a decrease in the waitlist, but production targets remain ambitious.
The higher pricing of the Cybertruck could have a mixed impact on Tesla's stock. On one hand, it may reduce demand and waitlist numbers, which could be seen negatively by investors. On the other hand, the vehicle's advanced features and Tesla's strong production targets could be viewed positively, reinforcing Tesla's market leadership in EVs. The net short-term impact is likely neutral as the market digests the pricing news against the backdrop of Tesla's overall growth strategy.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Ford's F-150 Lightning is mentioned as being $10,000 less expensive than Tesla's Cybertruck, which could make it more attractive to price-sensitive consumers in the electric pickup truck market.
The mention of Ford's F-150 Lightning being significantly cheaper than the Cybertruck could potentially benefit Ford in the short term, as consumers looking for more affordable electric pickup options might prefer the F-150 Lightning. This price comparison could positively influence Ford's stock as it positions the company as a competitive player in the electric pickup truck market.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60