The Controversial Call for Cybertruck Cancellation
Jefferies analyst Philippe Houchois has stirred controversy by suggesting that Tesla might be better off canceling the much-anticipated Cybertruck. Houchois has revised Tesla’s stock price target downward to $210 per share, attributing this to lowered earnings projections and reduced free cash flow. His recommendation comes just as the Cybertruck is on the brink of its delivery debut, sparking significant debate and criticism from the public and industry watchers alike.
Industry and Analyst Insights
Houchois’ criticism extends beyond the Cybertruck itself, pointing out broader challenges Tesla faces in the coming months. He notes that the company might struggle to gain traction while European automakers introduce affordable electric vehicles and Chinese competitors accelerate their product cycles. This perspective aligns with CEO Elon Musk’s recent statements, acknowledging that while the Cybertruck is a promising product, it may not substantially boost Tesla’s financials for another 12 to 18 months.
Strategic Focus and Future Outlook
Instead of investing heavily in ramping up Cybertruck production, Houchois suggests Tesla should redirect resources towards high-volume segments and improving the supply of 4680 batteries for the Model Y. As the highly anticipated delivery event approaches, it’s worth noting that initial Cybertruck deliveries might be limited to a small number of company employees. However, despite a slow start, the Model 3’s eventual success demonstrates that initial setbacks do not necessarily preclude long-term achievement.