Tesla 'looks stuck in a slow lane for another 12-18 months' says Jefferies, urges company to cancel Cybertruck
Jefferies analyst Philippe Houchois cut the price target to $210 per share on Tesla (NASDAQ: ISLA) stock as 2024 is "already a lost year for growth."
The price target cut reflects reduced earnings and free cash flow estimates. The analyst argues 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, Stellantis and Toyota)," Houchois wrote in a note.
The analyst believes 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