Tesla Share Rise as Analyst Forsees High Demand and Profitability in 2019

Longtime Tesla bull Daniel Ives who is also a Wall Street analyst stated that underlying drivers” for the EV market would likely encourage customers to purchase Tesla’s most affordable electric sedan, despite the focus of other carmakers on larger vehicles such as SUVs.
He also said that the production delays that have weighed on the company and its stock TSLA for the past year appear to have been resolved, demand looks strong heading into 2019 and the company is “poised to generate improved profitability and cash flow that puts the risk of a capital raise in the background for now.”
Quoting the marketwatch.com, Tesla Inc. shares rose 3{82420c97707a3781aafdf16cd101fa9ef84723d614dac73bc18e86d345751dc0} in early trade Wednesday before paring some of those gains, boosted by an optimistic note from Wedbush suggesting investor attention has shifted to the electric-car maker’s strong market opportunity and away from its Model 3 production problems.
The automotive and energy company is now on course with the delivery of the European Model 3 and shipments seem to be scheduled, with the window for customer s in host countries now opening.

“While there are worries that some European unit shipments might spill over into the second quarter and out of the first quarter, which could skew linearity in the first half of 2019, we believe the Street is well aware of this potential timing dynamic as underlying pent-up demand looks robust on this new European frontier for Musk & Co heading into 2019 with China also a major growth catalyst on the heels of recent price cuts,” Ives wrote in a note.
Ives also iterated his outperform rating on Tesla stock and its price target which is $440. this makes it 49{82420c97707a3781aafdf16cd101fa9ef84723d614dac73bc18e86d345751dc0} above its current trading level.

Source:

MarketWatch

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