The Big Picture: Tesla’s Latest Move
Tesla, spearheaded by the ever-energetic Elon Musk, is making waves yet again with the introduction of its Cybertruck. Set to begin deliveries this Thursday, the Cybertruck is stirring a mix of skepticism and anticipation among Wall Street analysts. While some are holding their breath for this launch, not everyone is sold on its potential to rev up Tesla’s growth engines.
Skeptic’s Corner: Guggenheim’s Doubts
Guggenheim Securities’ Ronald Jewsikow remains unconvinced. Firmly keeping a “SELL” rating, he argues that the Cybertruck won’t significantly alter Tesla’s demand trajectory. Why? A trio of challenges: limited fresh products, hurdles in persuading new EV buyers, and the ever-growing competition. Jewsikow sees these as speed bumps on Tesla’s road ahead.
The Stock Saga: A Rollercoaster Ride
Despite the caution flags raised by analysts, Tesla’s stock has been on a rollercoaster, almost doubling in 2023. This surge comes after a 65% plunge last year. A November market rally and falling Treasury yields played their part in this dramatic rebound.
The Jefferies Joke: What If?
Jefferies’ Philippe Houchois, with a touch of humor, toyed with the idea of Tesla scrapping the Cybertruck right before launch. While he sticks to his “hold” rating, he suggests that Tesla might benefit more by focusing on supporting the residual values of its vehicles, currently squeezed by price cuts and rising interest rates.
RBC’s Ray of Hope: A Brand Catalyst
Tom Narayan from RBC Capital Markets offers a brighter view. He sees the Cybertruck as a potential brand catalyst, potentially boosting sales of Tesla’s other models. However, he tempers expectations for its immediate financial impact, forecasting it to contribute modestly to Tesla’s total sales in the near term.
The Halo Effect: Cybertruck’s Brand Shine
Narayan believes the Cybertruck could act as a “halo truck,” rejuvenating a brand that’s lost some sparkle due to a dearth of new models.
Pricing and Performance: Guggenheim’s Predictions
Guggenheim forecasts a hefty price tag for the Cybertruck at its debut, with an average selling price hovering around $90,000 and a range of 275-300 miles per charge. But, Jewsikow warns, don’t expect this truck alone to turbocharge Tesla’s stock.
In Conclusion: A Mixed Bag of Expectations
As Tesla gears up to launch its Cybertruck, Wall Street offers a mixed bag of expectations. With debates swirling around its impact on Tesla’s growth and stock value, all eyes are on how this launch will play out in the dynamic landscape of electric vehicles.
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