Tesla Cybertruck Likely to Be ‘Cult Car’, Says Morgan Stanley
Morgan Stanley reiterated its overweight rating on Tesla’s stock and a $220 price target this week, ahead of the company’s Cybertruck entering production this summer.
Analysts at the firm think the Cybertruck could develop a more cult-like following rather than being a huge financial success, even calling it a “side-show” to the current Tesla success story, reports Investing.
“A lot has changed since Franz von Holzhausen threw a metal ball at the ‘Armor Glass’ window of the Cybertruck in November 2019,” write analysts. “The truck is real and we had a great time with it last week behind the Austin plant. But financially it may be more of a ‘side-show’ to the Tesla story today.”
The firm still considers the Cybertruck a crucial product for Tesla, especially with its style pushing the envelope on design and auto manufacturing elements.
“The Cybertruck is an important element of Tesla’s futurist brand image,” Morgan Stanley analysts wrote. “One of the most interesting features of the truck is the lack of a Tesla emblem anywhere on its exterior. The truck itself is emblematic of the company and the risks it is willing to take to push the envelope and reinvent so many aspects of what it means to be an auto manufacturer.”
“We feel the Cybertruck carries more value in a cultural/zeitgeist sense than in a direct economic sense. At the same time, we encourage our readers to ask themselves: how many Cybertrucks can roll up to a parent-teacher conference or youth soccer match at the same time before losing some of that indescribable… something?”, writes Morgan Stanley.
Tesla is set to enter production with the Cybertruck as soon as July, with first deliveries expected to go out this year.
Tesla Acquires 15-Year Patent for Cybertruck Wheel Cap Design https://t.co/ZsKmx3eHxX
— TeslaNorth.com (@RealTeslaNorth) March 8, 2023