Tesla Motors, the California based automaker that only produces luxury electrically-driven autos, has been the sweetheart of US investors in the last couple of years, but now analysts seem to diverge on future opportunities.
For example, Morgan Stanley’s analyst Adam Jonas has opted to lower production expectations for the third model in the automaker’s range, the yet to be introduced Model 3, lifted the Average Transaction Price (ATP) for the company, dropped the share price forecast from $320 to $290 and supported an overweight rating. On the other hand, Pacific Crest’s Brad Erickson sees the yet to increase electrical segment as an opportunity for investors that look to acquire shares, seeing 2016 estimates at a $316 price target.
When it comes to future plans for Tesla, the company is currently on track to produce just 33,000 Model S luxury sedans in 2014 – the only model currently available. Its proposed battery Gigafactory is expected to allow the carmaker to lift production spectacularly to 500,000 cars in 2020. That would cover Model S, the Model X crossover ready for US customers in 2015 and the planned Model 3 affordable sedan that would come the earliest in 2017. The global luxury market is on the rise, making Tesla very prepared to secure the electrical niche, but the customers appear to remain unconvinced of the technology’s future for the time being.