Is Tesla (TSLA) on Track to Finally Hit 5,000 Model 3 Cars Per Week by Early July?
GBH Insights' Daniel Ives is upbeat on TSLA ahead of Memorial Day weekend, spotlighting positive production trajectory for the Model 3.
GBH Insights analyst Daniel Ives is feeling encouraged on Tesla (NASDAQ:TSLA) approaching the holiday weekend, seeing an electric car giant that is fending off obstacles as it hits nearer to 450 to 500 Model 3 cars being built every day. In other words, could CEO Elon Musk’s company be tracking to finally hit its ever “elusive” target of 5,000 per week by the beginning of July? Considering this trajectory, Ives wagers yes.
Therefore, the analyst reiterates an Attractive rating on TSLA stock with a $320 price target, which implies a 69% upside from current levels. (To watch Ives’ track record, click here)
“That said, Tesla will yet again pause production at its flagship Fremont factory over the next six days (May 26-31) in order to work on fixes/bottlenecks to its assembly line of the rollercoaster Model 3 production saga. While Musk & Co. already announced 10 days of temporary shutdowns this quarter in hopes of fixing and smoothing out manufacturing issues and bottlenecks that have been the black cloud over Tesla for the last six months, this latest shutdown adds to some of the Street worries around all-important Model 3 production targets,” notes Ives. After all, the analyst recognizes “the Street losing confidence in the name as of late,” calling the next months ahead absolutely “pivotal.”
If production challenges are eased, Ives angles for a big positive share driver revving forward, should Tesla’s team hit the mark of success. The past year certainly has thrown the gauntlet down for the electric car giant’s team, but the analyst holds out hope as he recognizes company hard at work at “significantly ramping up Model 3 production,” with potential to at last hit Musk’s “long stated” ambitious target goal.
TipRanks suggests caution is the word on the Street hanging over the challenged electric auto empire- but with a hint of positivity. Out of 22 analysts polled in the last 3 months, 6 are bullish on TSLA stock, 9 remain sidelined, while 7 are bearish on the stock. With a return potential of nearly 7%, the stock’s consensus target price stands at $296.00.