After taking the Tesla Inc (NASDAQ:TSLA) Cybertruck for a spin last week, one analyst is calling it a "side-show" to the Tesla story.
If the analyst is right about the long-awaited Tesla truck, Jim Cramer recommends another automaker as an obvious buy.
What To Know: Morgan Stanley's Adam Jonas is out with a new note on the Cybertruck, calling it a "cult car."
"We regularly speak with clients who believe Tesla may sell many hundreds of thousands of Cybertrucks annually," Jonas said. "We think it will more likely be an enthusiast/cult car with far more limited volume."
Jonas' early read is that the electric truck is overhyped as far as widespread interest goes and that Tesla will likely sell about 50,000 units a year.
Tesla has completely transformed from when the Cybertruck was initially unveiled in 2019. Tesla is now producing vehicles at scale and the truck isn't likely to fit into that approach, nor will it move the needle for Tesla financially, Jonas explains.
"The point we are making is that the scale and scope of ambitions for the company has evolved meaningfully," Jonas said, adding that Tesla would be better served to put a cap on production and roll the vehicle out as a limited edition model.
Perhaps a cap of 100,000 units per year could be in the cards, he says, with a total production run of 420,699 units.
"In this current iteration, we do not believe the Cybertruck poses a significant threat to the established pickup truck market," Jonas said.
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Why It Matters: On Thursday, Cramer appeared on CNBC's "Squawk On The Street," and called the Morgan Stanley note a buy signal for Ford Motor Co (NYSE:F).
The "Mad Money" host applauded Jonas' call and largely agreed with his take that it could be a "cult car" of sorts.
"You want to buy Ford hand over fist if this is the case," Cramer said.
Ford has traded relatively flat over the last three months and Cramer expects the Detroit-based automaker to turn in strong numbers on its next quarterly report.
Ford's biggest worry is increasing competition against the F-150, which has been America's best-selling vehicle for a long time running.
The electric version of the truck has seen strong demand out the gates and if the competition starts to fade, Ford is the stock to buy, Cramer said.
Check This Out: Props From The Motor City To The Dogefather - Former Ford CEO Says Tesla Is 'One Generation Ahead,' Has 'Leg-Up' On EV Competition
TSLA, F Price Action: At time of publication, Tesla was down 0.48% at $181.12 and Ford was down 1.66% at $12.77, according to Benzinga Pro.
Photo: courtesy of Tesla
