Tesla's stock price has risen by more than 80% this year, performing exceptionally well among a group of automotive stocks. However, Jefferies' analysts lowered Tesla's target stock price in a report on Monday.
Jefferies analyst Philippe Houchois lowered Tesla's target price from $250 to $210, a 16% reduction. He also pointed out that although it is unlikely, canceling the sale of Cyber trucks may have a positive impact on Tesla's stock.
Houchois believes that Tesla has fallen into a slow lane, traditional European car companies are launching cheaper electric vehicles, and competition for affordable electric vehicles in China is intensifying, all of which are threatening Tesla's position as an industry leader.
However, Cyber trucks do not have a first mover advantage when entering the market, and the threshold for electric trucks has been lowered, which may result in Tesla's model not receiving high praise in the market. Houchois stated that Tesla should now focus on the market for high sales models and the production of Model Y 4680 batteries.
It is reported that Tesla's Cyber truck will begin delivery on November 30th, and a celebration will be held at Tesla's super factory in Austin, Texas.
Difficulty in achieving growth next year
Houchois pointed out that 2024 may be a difficult year for Tesla to achieve growth, but this will help Tesla refocus its efforts on shaping business advantages of simplicity, scale, and speed.
Musk himself also advocated a cautious attitude during the third quarter earnings conference call, hoping to lower investors' expectations for Cyber trucks, which face significant challenges in achieving mass production.
In early November, Adam Jonas, an analyst at Morgan Stanley, expressed concerns about Tesla's development and suggested that investors look for factors that support Tesla's stock price.
He stated that Tesla must improve its lower than consensus earnings per share expectation while launching the Cyber truck. Tesla needs to demonstrate that its business model is shifting towards software, charging station licenses, and other products unrelated to the automotive market.
He also added that although the release of the Cyber truck will have an impact on market sentiment, as the threshold for electric trucks has been greatly lowered, Daimo believes that the model will have little impact on Tesla's future large-scale investment portfolio.