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.

Model 3

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.

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