Tesla Inc TSLA has seen its share of concerning or questionable media attention, but the company still boasts the best-positioned product roadmap in all of technology, according to Loup Ventures' Gene Munster.
What Happened
Tesla is a leader and visionary in the technology space given its ability to take full advantage of the ongoing shift toward electric vehicles, autonomous driving and sustainable energy, Munster, a former research analyst and co-founder of Loup Ventures, said in a Monday blog post.
The company's newest Model 3 sedan will "successfully drive the electric transformation of the auto industry," which in turn will generate sufficient capital for management to move on to new products and projects, he said.
Why It's Important
Tesla is expected to achieve its production and profit targets in the September and December-ending quarters, but this won't put an end to the bull vs. bear debate, Munster said. Investors will continue questioning the true demand for Tesla's cars, especially when the U.S. tax credit for electric cars dips from $7,500 in 2018 to $3,750 in 2019, he said.
What's Next
Munster is modeling for Tesla to report the following in its September-ending quarter:
- Total production of 78,300 cars.
- 53,500 Model 3s produced.
- Model 3 gross margins of 15 percent.
- Average selling price of $55,000 for all cars.
- Free cash flow of more than $500 million.
Related Links:
Gene Munster: 3 Ways Elon Musk Is Hurting Tesla
Gene Munster: Telsa Still Holds Upside Potential, But Elon Musk Is Making Life Hard For Bulls
Photo courtesy of Tesla.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
