Tesla’s stock price has risen by more than 80% this year, which is a unique performance among automobile stocks. However, analysts at Jefferies lowered Tesla's price target in a report on Monday. Jefferies analyst Philippe Houchois lowered his Tesla target price from $250 to $210, a cut of 16%. He also noted that, although unlikely, canceling the Cybertruck sale could have a positive impact on Tesla stock.
Houchois believes that Tesla has fallen into the slow lane. Traditional European car companies are launching cheaper electric vehicles, coupled with the intensifying competition from China's economical electric vehicles, all of which are threatening Tesla's position as the industry leader.
There is no first-mover advantage for the Cybertruck to enter the market now, and the threshold for electric trucks has been lowered. As a result, Tesla’s model may not be well received in the market. Houchois said Tesla should now focus on the market for high-volume models and the production of Model Y4680 batteries.
It is reported that Tesla’s Cybertruck will begin delivery on November 30, and Tesla’s Gigafactory in Austin, Texas will host a celebration event for this purpose.
Growth will be difficult to achieve next year
Houchois pointed out that 2024 may be a difficult year for Tesla to achieve growth, but this will help Tesla refocus on shaping its business advantages of simplicity, scale and speed.
Musk himself also preached caution during the third-quarter earnings call, hoping to lower investor expectations for the Cybertruck, which faces great challenges in achieving mass production.
In early November, Morgan Stanley analyst Adam Jonas expressed concerns about Tesla's development and suggested that investors look for factors that support Tesla's stock price.
He said Tesla must improve its below-consensus earnings per share forecast while launching the Cybertruck. Tesla needs to show that its business model is shifting toward software, charging station licensing and other products that have nothing to do with the car market.
He also added that although the release of the Cyber truck will have an impact on market sentiment, because the threshold for electric trucks has been greatly lowered, Morgan Stanley believes that this model will play little role in Tesla's future large-scale investment portfolio.