Some on Wall Street expressed skepticism about the new pickup from Tesla Inc., with the company's stock dropping before this week's unveiling, Tesla's first foray into the top auto segment in the US.
Equities fell more than 1% on Monday after a weekly gain of more than 4% in the previous week. Chief executive Elon Musk tweeted earlier this month that the pickup he calls "Cybertruck" will be unveiled on Thursday in the Los Angeles area.
Musk has labeled the truck a "Blade Runner" truck, "out of a sci-fi movie" and unrecognizable by the trucks it has sold in recent decades.
About every third vehicle sold in the US is a pickup, and Ford Motor Co.'s F-1
See also: Tesla's best-selling sedans have been rated as reliable by Consumer Reports.
Wall Street, however, focused on the here and now.
"We expect that the focus will be on how well the actual design of the buyers of pickups," said Emmanuel Rosner from Deutsche Bank in a note on Monday.
"Based on earlier comments, the starting price could be $ 50,000, but high-end versions could have a range of 400-500 miles and acceleration from 0-60 miles per hour of <3.4 seconds The actual design of the truck has been very little information published. "
There is a risk that the vehicle is so futuristic that it does not attract" traditional buyers of pickups "and leaves a niche product with lower volume.
Related: Tesla's Q3 earnings are scrutinized by analysts – and some do not like what they see
It could be a case of "once burned": as early as March, Tesla had the compact SUV Model They reveal just before the results of the first quarter. Many analysts criticized Tesla for this timing and once again expressed concern over production issues. The stock fell 5% after the release of the Y model.
"After the launch of the Model Y deflated on concerns that this could explode the Model 3, we expect a similar response to the truck," said Craig Irwin, an analyst at Roth Capital Partners.
"We do not expect the first truck production until mid-2021, about a year after the first Model Y production," Irwin said in a note. Tesla could also go back to earlier proposals that the "cybertruck" would start at less than $ 50,000 and with a range of 400,000 miles, he said.
Read more: If Tesla and Ford Motor are about to wage war for the electric car's crown, they would not know it from this stock exchange. [Roth] reiterated his stock selling price target of $ 249. Deutsche Bank maintained its hold rating for Tesla shares with a price target of $ 290.
According to FactSet, which tracks 32 Wall Street analysts from Tesla, the Tesla share is rated on average as holding with a price target of $ 314.83. The average price target would mean a discount of 9% compared to the Monday quotations.
Tesla shares rose 4.5% this year, while the S & P 500 index gained 24% and 20%
SPX, + 0.03%
and the Dow Jones Industrial Average.
DJIA, + 0.07%