Analyst Expects Tesla Model 3 Demand To Be ‘Very Strong” In 2019
In a recent note to investors obtained by CNBC, Wedbush Securities analyst Dan Ives has predicted that demand for Tesla’s Model 3 sedan “looks very strong into 2019 and beyond”, something that could reduce the risk for the electric car maker needing to raise capital again in the near future.
Ives highlighted that Tesla’s capital needs have been an ongoing issue for the company ever since it went public in 2010. He now expects Tesla to spend $2.2 billion to $2.3 billion in 2019 amid pent-up demand in the market.
Tesla’s deliveries to European customers appear to be on schedule, Ives said, while adding that China could prove to be a “major growth catalyst” next year following the company’s recent price cuts in the country.
Dan Ives said in a note that underlying drivers for the electric vehicle market are likely to push consumers toward Tesla’s cheapest passenger car, at a time when many automakers are abandoning sedans in favor of SUVs.
Tesla shares were up nearly 2 percent in premarket trading on Wednesday, pushing its market value to more than $50 billion. In the past 52 weeks, Tesla shares have traded as high as $387.46 and as low as $244.59.
Tesla’s stock has gone down 5% this year, closing at $295.39 yesterday.