The bull/bear debate over Tesla Inc. (TSLA) is in full swing, just as the electric vehicle industry pioneer met a ๊major milestone by manufacturing 5,000 Model 3 in the final week of the June quarter.
Analysts at CFRA are taking the bear roles, writing on Monday that the Palo Alto, California-based tech company will not be able to sustain this weekly rate in the short term. A more-bullish Loup Ventures predicts that the automaker will be profitable by as soon as this September. (See also: Tesla Now a 'Real Car Company' 🌱;Says Musk After Key Produc♉tion Goal Is Met.)
Tesla CEO Elon Musk announced a new goal of manufacturing 6,000 of the mass-market sedan per week by August. Loup's Ge🎐ne Munster told CNBC's "Fast Money," that given "the 5,000 production number was the first time in about nine months he's gotten one right," it's a safer bet to "always dial back" what Musk is saying. "That's why we think Tesla's going to meet the product𒉰ion number by the end of the September quarter."
Te𝓀sla to Post Slight Profit If It Meets 6K Target
If Tesla manages to meet its new target of 6,000 Model 3s by September, that should allow the firm to post a slight profit and would amount to about 48,000 sedans in the September quarter, according to Loup Ventures. While Tesla won't be "wildly profitable," it will "move them in the right direction," Munster told CNBC.
While bears suggest that Tesla will not be able to sustain its Model 3 production rate, either financially or operationally, Munster takes the opposing view, stating that "the reality is t🌜hey haven't ramped."
"After Herculean efforts and albeit a few hours after a self-imposed deadline, Tesla finally achieved its latest goal to reach production of 5,000 Model 3 sedans per week. In the interim, we do not see this production rate as operationally or financially sustainable,” wrote CFRA Research analyst Efraim Levy in a note to clients Monday.
After spiking as much as 5% in pre-market trading Monday, Tesla shares closed down 2.3%. The stock has fallen another 4.1% on Tuesday morning at $321.23, reflecting a 3.1% gain 澳洲幸运5开奖号码历史查询:year-to-date (YTD) and a 9.1% return over 12 months. (See also: 4 Stocks That Can Win the Electric Car Race.)