The Future Fund managing partner Gary Black thinks that Tesla Inc. TSLA will not roll out the Cybercab earlier than its scheduled release in 2026.
What Happened: Black said in a post on X on Friday that those who believe Tesla won't launch a more affordable compact model priced between $25,000 and $30,000 with four seats, a steering wheel, and pedals in the first half of 2025 are overlooking key details.
He referenced the EV giant's third-quarter earnings call transcript where Elon Musk tied the topic of a cheaper Tesla EV to a forecast of 20-30% YoY volume growth for 2025.
He went on to add that the Cybercab won’t be available until 2026, underscoring that Tesla will not disclose any details about the new cheaper model until right before its launch to avoid impacting Model 3 or Model Y sales in the fourth quarter.
In a separate tweet, Wedbush analyst Dan Ives highlighted that the next major milestone investors are waiting for is a formal federal framework for Full Self-Driving (FSD).
He believes it will provide a significant boost to Tesla's autonomous and AI ambitions in 2025 and 2026.
Why It Matters: Earlier this week, Cybercab was spotted undergoing tests at the Giga Texas facility.
The vehicle, priced below $30,000, is a key element of the company’s plan to transform urban transportation through self-driving vehicles.
However, the autonomous vehicle industry faces skepticism, as Lucid Group Inc. LCID CEO Peter Rawlinson previously said that self-driving cars won’t be a reality until the 2030s.
In October, Tesla reported its third-quarter revenue which reached $25.18 billion, marking an 8% increase compared to the previous year. However, the figure fell short of the Street’s consensus estimate of $25.37 billion, according to the data from Benzinga Pro.
Price Action: Tesla’s stock finished at $345.16 on Friday, rising 3.69% for the day. In after-hours trading, it saw a slight uptick of 0.081%. Year-to-date, Tesla’s stock has surged by 38.94%.
The consensus rating for Tesla stock is “Neutral,” according to data from Benzinga Pro. The highest price target is $400, while the consensus target stands at $232.20, suggesting a 33% downside from current prices.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Pexels
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
