Tesla’s Affordable Future: Insight from Gary Black

Managing partner Gary Black from The Future Fund has indicated that Tesla Inc. TSLA isn’t expected to launch the long-anticipated Cybercab model before 2026.

Key Developments: In a recent post on X, Black challenged those who doubt that a more affordable Tesla model will hit the market in the first half of 2025. This compact model, priced between $25,000 and $30,000, will feature four seats, a steering wheel, and pedals.

He referred to Tesla’s third-quarter earnings call, where Elon Musk connected the potential release of a cheaper EV to a projected 20-30% year-over-year volume growth for 2025.

Related Story: Astrophysicist Neil deGrasse Tyson Dismisses Elon Musk’s Mars Vision; Musk Responds

Black further emphasized that the Cybercab won’t be on the market until 2026. He explained that Tesla is unlikely to share information about the new budget-friendly model until shortly before it launches to protect sales of existing models like the Model 3 and Model Y in Q4.

Separately, Dan Ives, an analyst at Wedbush, remarked that investors are keenly awaiting a formal federal framework for Full Self-Driving (FSD). He anticipates that this development could significantly enhance Tesla’s prospects in autonomous driving and artificial intelligence by 2025 and 2026.

Importance of the Cybercab: Recently, the Cybercab was seen testing at Tesla’s Giga Texas facility. This vehicle, priced under $30,000, is an essential part of Tesla’s strategy to modernize urban mobility with self-driving technology.

The journey toward fully autonomous vehicles faces challenges. Notably, Lucid Group Inc. LCID CEO Peter Rawlinson has stated that fully self-driving cars may not be realized until the 2030s.

In its third-quarter earnings report, Tesla posted a revenue of $25.18 billion, reflecting an 8% increase from the previous year. Yet, this figure was slightly lower than analysts’ expectations of $25.37 billion, according to Benzinga Pro.

Market Response: On Friday, Tesla’s stock closed at $345.16, rising 3.69% during the day. In after-hours trading, it experienced a modest increase of 0.081%. Year-to-date, Tesla’s stock has shown a remarkable gain of 38.94%.

Currently, the consensus rating for Tesla stock is “Neutral.” The highest target price is set at $400, while the consensus target stands at $232.20, indicating a potential downside of 33% from the current stock price.

Read Next:

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Pexels