Tesla 'looks stuck in a slow lane for another 12-18 months' says Jefferies, urges company to cancel Cybertruck By
2023-11-21 00:20:07

Analysts at Jefferies cut the price target to $210 per share on Tesla (NASDAQ:) stock as 2024 is “already a lost year for growth.”

The price target cut reflects reduced earnings and free cash flow estimates. The analysts argue that “Tesla looks stuck in a slow lane for another 12-18 months, unable to capitalize on peer delays while European legacy OEMs launch $/€25k EVs next year and Chinese carmakers set a new pace of shorter product cycles.”

“We appreciate future value from FSD (incl licensing) or Optimus, but not as near-term substitutes to solid core performance. As BEV penetration continues to grow globally, one of Tesla's long-term edge is to remain one of a handful of global low-cost producers (along with BYD (SZ:), Stellantis (NYSE:) and (NYSE:)),” the analysts wrote in a note.

The analysts believe that Tesla canceling Cybertruck “would probably be positive for shares.”

“With 2024 already a lost year for growth, it would help Tesla refocus on an edge that was built on simplicity, scale and speed.”

Instead of spending significant resources on Cybertruck ramp, the management should focus on on “ high volume global segments and supply of 4680 for Model Y.”

“Allocating capital to support residuals would be a better use than Cybertruck.”

The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。