Tesla Stock Price Fell When the Company Suggested Using a Ferrari in Its Next Cybertruck

Tesla stock

Tesla (NASDAQ:TSLA)

In a new report issued on Thursday, Morgan Stanley tried to temper investors’ expectations over the Tesla (NASDAQ:TSLA) Cybertruck.

According to analyst Adam Jonas and his colleagues, the electric vehicle pickup may be more of a financial sideshow than a volume player, mainly if the business follows Ferrari’s (RACE) lead and deliberately limits manufacturing to create a “limited edition” exclusivity. Despite this, Morgan Stanley still expects Tesla to be a significant participant in the electric pickup industry by 2030, with sales of roughly 500,000 units of pickup trucks expected via conventionally built models aimed at more significant portions of the core pickup truck market and commercial end-user applications.

While the Cybertruck is not considered a substantial danger to the existing pickup truck market, Jonas believes it might catch up with some consumers on the more enthusiastic end of the market, which could cut some sales of Ford F-150 Raptor vehicles in particular. For now, the Cybertruck is seen as creating a minor threat to the market for pickup trucks.

“We believe that Tesla’s Cybertruck is crucial in many respects. Bringing statement items like Cybertruck to the market that grab customers’ imagination helps improve the legitimacy of both the company and the brand. The Tesla brand is known for its irreverence and irreverence toward established norms. On the other hand, investors should consider that Tesla’s stock objective, as well as the expectations inherent in its 650 billion dollar market worth, has risen enormously since 2019.

In anticipation of the formal start of production of the Cybertruck this summer, Tesla stock has significantly increased the number of employees it is employing at its Texas Gigafactory. On the other hand, Elon Musk said on their most recent earnings conference call that manufacturing at volume would not commence until 2024.

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