Jefferies lowers Tesla price target, rules out growth in 2024 and recommends canceling Cybertruck By Investing.com

Investing.com – Jefferies analysts cut their price target on Tesla (NASDAQ:TSLA) shares to $210 per share, saying 2024 “is already a non-growth year.”

The target price downgrade reflects lower earnings and free cash flow projections. Analysts argue that “Tesla appears to be idling for another 12 to 18 months, unable to take advantage of competitor delays as traditional European automakers launch $/€25k electric vehicles next year and Chinese automakers impose a new rhythm of shorter product cycles.”

“We recognize the future value of FSD (including licensing) or Optimus, but not as short-term substitutes for solid core business performance. As electric vehicle penetration continues to grow globally, one of Tesla’s long-term advantages is to remain one of the few low-cost global manufacturers (along with BYD (SZ:002594), Stellantis (NYSE:STLA) and Toyota (NYSE:TM)),” the analysts wrote in a report.

Analysts believe Tesla canceling the Cybertruck “would likely be positive for the stock.”

“With 2024 already being a non-growth year, it would help Tesla focus on an advantage that was built on simplicity, scale and speed.”

Instead of spending significant resources on ramping up Cybertruck production, management should focus on “high-volume global segments and supplying 4680s for the Model Y.”

“Allocating capital to support residual values ​​would be a better use than Cybertruck.”