Some of Wall Street were skeptical of Tesla Inc.'s new pickup, with the company's shares falling short this week, Tesla's first hike in the top US auto segment.
stocks fell more than 1% on Monday, after a weekly gain of more than 4% over the previous week. CEO Elon Musk tweeted earlier this month that the pickup truck, which he called "cybercracking," would be unveiled Thursday in the Los Angeles area.
Musk called the truck a "pickup truck with a gun," "outside of a science fiction movie," and unrecognizable by pickup trucks that have been sold in recent decades.
Approximately one in every three cars sold in the United States are pickup trucks, and the Ford Motor Co. F-1
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Wall Street has chosen to focus on the here and now.
"We expect to focus on how much actual design resonates with pickup buyers," said Emmanuel Rosner of Deutsche Bank in a note on Monday.
"Based on previous comments, starting price may be <$ 50,000, high-end versions may have 400-500 miles and acceleration 0-60mph <3.4 seconds, but very little is revealed about the actual design on a truck. "
There is a risk that the vehicle is so futuristic that it will not attract" traditional pickup buyers, leaving it a niche product of smaller volume, "says Rosner.
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It may be a case of "once burned out": In March, Tesla had the compact SUV Y unveiled just before the first quarter results. this time and revealed renewed concerns about production problems. The stock fell 5% after the launch of Model Y.
"After the launch of the Model Y turns away from fears that it could turn into a Model 3, we expect a similar reaction from the truck," says Craig Irwin, an analyst at Roth Capital Partners.
"We do not expect the initial production of trucks until mid-2021, about a year after the Model Y fist was produced," says Irwin in a note. Tesla may also return from previous assumptions that Cybertruck "will start at less than $ 50,000 and with a range of 400, 500 miles," he said.
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Roth confirms its stock price target with a target price of $ 249. Deutsche Bank also maintained its stock rating on Tesla shares at a price target of $ 290.
On average, Tesla shares were rated as hold at a target price of $ 314.83, according to FactSet, which tracks 32 Tesla Wall Street analysts. The average price would be a 9% discount over Monday's prices.
Tesla shares gained 4.5% this year, compared to 24% and 20% gains for the S&P 500 Index
SPX, + 0.06%
and the Dow Jones Industrial Average.
DJIA, + 0.09%