Some on Wall Street sounded skeptical about the new Tesla Inc. pickup, and the company's shares fell ahead of this week's unveiling, Tesla's first trip to the top car segment in the United States.
stock fell more than 1% on Monday, after a weekly gain of more than 4% for the previous week. CEO Elon Musk tweeted earlier this month that the pickup truck, which he has dubbed the "cyber truck," will be unveiled Thursday in the Los Angeles area.
Musk has called the truck a "Blade Runner" pickup, "" out of a sci-fi movie, "and is unrecognizable from the pickups that have been sold over the last decade.
About one in three vehicles sold in the United States is a pickup, and Ford Motor Co. & # 39; s F-1
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However, Wall Street chose to focus on the here and now.
"We expect the focus will be on how well the actual design resonates with pickup buyers," Emmanuel Rosner at Deutsche Bank said in a statement Monday.
“Based on previous comments, the starting price may be <$ 50,000, advanced versions could contain 400-500 miles of range and 0-60 mph acceleration <3.4 seconds, but very little has been revealed about the actual design of the truck. "
There is a risk that the vehicle will be so futuristic that it will not attract" traditional pickup buyers, leaving it with a niche product with lower volume, "Rosner said.
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It may be a case of "once burned": In March, Tesla had the compact The SUV model Y reveals just ahead of the first quarter results. Many analysts blamed Tesla for that time, revealing renewed concern about production issues. The stock fell 5% after unveiling the Model Y.
"After the Model Y launch became concerned that this would cannibalize the Model 3, we expect a similar response to the truck," said Craig Irwin, an analyst at Roth Capital Partners.
"We do not expect initial truck production until mid-2021, about a year after fist Model Y production," Irwin said in a note. Tesla may also step back from previous proposals that "Cybertruck" would start at under $ 50,000 and with the range of 400 kilometers, he said.
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Roth repeated the seller rating on the stock with a $ 249 price target. Deutsche Bank also retained its hold rating on Tesla shares with a price target of $ 290.
On average, Tesla stock is rated at a price target of $ 314.83, according to FactSet, which tracks 32 Wall Street analysts at Tesla . The average price target would represent a 9% discount compared to Monday's prices.
Tesla shares have gained 4.5% this year, compared to gains of 24% and 20% for the S&P 500 index
SPX, + 0.03%
and Dow Jones industrial averages.
DJIA, + 0.08%