Morgan Stanley sees less than 5% of Tesla revenue from Cybertruck by 2025

After Tesla held an event in conjunction with the first deliveries of its new Cybertruck, Morgan Stanley forecasts 50 deliveries of the truck in FY23, followed by 30,000 units in FY24 and 78,000 units in FY25. A part of Tesla’s brand allure and engineering philosophy involves following through on various “moonshot” projects, such as this “exciting avant-garde ‘art truck’,” but the firm sees it as valuable “putting into perspective” that it forecasts Cybertruck will account for less than 5% of Tesla revenues and closer to 0% of profit by 2025. While the firm expects Cybertruck to be made in significant volumes, it believes the company may purposely limit series production to maintain scarcity while focusing company resources on more profitable products. Morgan Stanley maintains an Overweight rating and $380 price target on Tesla shares.