The reception to Tesla, Inc.‘s (NASDAQ:TSLA) Cybertruck delivery event was muted among analysts, with two notable bulls offering cautious commentaries following the launch of the newest vehicle from the electric vehicle pioneer’s stable.
Analysts Harp On Disappointing Pricing: At the current production level, Tesla could be losing $40,000 on each vehicle, said Deepwater Asset Management co-founder Gene Munster in a CNBC interview late Thursday. The loss will likely narrow when the company gets to the scale of making 10,000 units, he said.
“I’ve been waiting for this for four years. I was disappointed today in the price,” the fund manager said, adding “I have a reservation [but] I don’t know if I’m going to get it,” he added.
In a separate video posted on X, formerly Twitter, Munster said pricing across the trim levels was 20-25% higher than what he expected. The high-end trim, namely the Cyber Beast, and the all-wheel drive versions are priced at $99,000 and $80,000, respectively, and the single-motor rear-wheel drive, which will be available in 2025, has a price tag of $61,000, he noted.
Compared with Ford Motor Co.’s (NYSE:F) F-150 Lightning, Munster said each of Blue Oval’s versions is around $10,000 lower. That said, the analyst sees the Cybertruck as a superior product. It’s about 15%-20% longer, is more durable, and has better performance, he said.
The fund manager, however, said Tesla is doing the right thing by keeping prices higher as it can’t produce enough of the EV in the near term to meet demand.
Future Fund co-founder Gary Black also echoed Munster’s sentiment. In a post on X, the fund manager said the pricing was higher than his estimate.
Black previously expected the pricing of the RWD, AWD dual-motor and AWD tri-motor variants at $49,900, $59,900, and $79,900, respectively.
He however highlighted the silver lining in the cloud. “At higher prices, there’s less chance of cannibalizing Model Y/X,” he said.
See Also: Everything You Need To Know About Tesla Stock
Minimal Contribution Near Term: Munster is of the view Tesla will likely produce 35,000 units in 2024. With a higher pricing, the company will be able to capture margins with the few vehicles it would be able to deliver, he said.
The fund manager said eventually prices have to come…
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