Tesla’s Cybertruck will have limited appeal and most likely be a “enthusiast/cult auto” fairly than really serious opposition to the Ford F-150 and other legacy pickups, concludes a Morgan Stanley analyst who is typically bullish on Tesla.
“We regularly talk with shoppers who feel Tesla might provide hundreds of thousands of Cybertrucks every year,” stated analyst Adam Jonas right after checking out Tesla’s Texas manufacturing unit, in which the pickup will go into creation later on this calendar year.
“We believe it will more possible be an fanatic/cult automobile with significantly much more constrained volume” closer to 50,000 units/year, Jonas wrote in a exploration observe Thursday. There really should be “some style and design and manufacturing learnings” from the Cybertruck that could make it into main Tesla autos, he included.
The evaluation comes right after Jonas attended Tesla’s March 1 Investor Day at the Austin plant, the place the Cybertruck was on display screen. Jonas rates Tesla inventory as a “obtain” with a value concentrate on of $220 for each share as opposed with Thursday’s closing price of $172.92.
While the Cybertruck was a source of enjoyment when it was initial unveiled by Musk in 2019, Tesla has more substantial ambitions now.
“The truck is authentic and we had a fantastic time with it driving the Austin plant,” Jonas mentioned. “But economically it may well be a lot more of a sideshow to the Tesla tale currently.”
Since the Cybertruck’s unveiling, EV maker Rivian launched its R1T pickup in late 2021 and Ford started selling its electric F-150 Lightning last 12 months. Chevrolet is scheduled to launch its Silverado EV later this 12 months and Ram options to be a part of the section in 2024.
Other auto market analysts also see Tesla’s wildly developed pickup as a specialized niche product. And Musk has failed to clarify its starting price tag, which originally was promised at $40,000. Musk has considering that said the cost will be higher, but not by how a lot.
“We really feel the Cybertruck carries additional price in a cultural/zeitgeist perception than in a immediate economic sense,” Jonas explained. “We motivate our audience to check with on their own: How several Cybertrucks can roll up to a guardian-teacher convention or youth soccer match at the same time in advance of losing some of that indescribable a thing?”
With an unpainted stainless steel exterior and sharply sloped roof, the Cybertruck doesn’t pose a substantial menace to the recognized pickup current market, Jonas explained. It could, even so, take in into the fanatic truck sector where motor vehicles like the Ford F-150 Raptor compete, he stated. The Raptor has a starting off price of $78,670 with shipping and delivery.