December 1, 2023 – 3:35 PM UTC
(Reuters) – Tesla shares (TSLA.O) fell about 2% on Friday after the highly anticipated launch of its Cybertruck left analysts concerned about the electric vehicle’s steep price tag and a longer wait for significant financial payoff.
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The $60,990 starting price for the long-delayed Cybertruck is more than 50% higher than what CEO Elon Musk had touted in 2019 and a cost that analysts have said will draw select, affluent buyers.
“Cybertruck does not significantly move the financial needle for Tesla in FY24..,” Wedbush said in a note, while Bernstein analysts forecast 250 deliveries this year and 75,000 for next year, saying both “may be ambitious”.
Musk has said Tesla was likely to reach a production rate of roughly 250,000 Cybertrucks a year in 2025.
The company has repeatedly warned that it would face significant challenges in ramping the product and becoming free cash flow positive – likely not until mid-2025 – which could negatively impact profitability.
“Tesla has a product problem – i.e., an older line-up that does not address enough of the market, and has no new mass market…
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