The Tesla Inc (NASDAQ:TSLA) Model 3 will have a lot in common with the Apple iPhone. This is according to Gene Munster, the CEO at Loup Ventures. In a note written this week, Munster claims the adoption of Tesla’s affordable electric car will catapult the auto market into a new realm of transport. The Loup Ventures CEO also asserts that this would be similar to Apple’s own effect on mobile computing.
The only thing standing in Tesla’s way is adoption. However, electric vehicles are part of a fast-moving revolution. Leading this rebellion is electric car giants like Tesla. By the end of the next 12 months, around 400,000 people will be zipping around in Model 3’s worldwide. Those pre-orders are paid for too. Succeeding at this could easily prove the incoming Tesla as the most anticipated car in history.
The current paradigm shift in transport, propelled by Tesla Inc is not unlike the effect Apple had on mobile computing. Muster believes the world will eventually consider the auto scene transformation and draw similarities to Apple’s pioneering.
Tesla’s success threatens normal carmakers, companies like Uber, and anyone involved in the auto scene. Corporations and people alike need to prepare for the way consumers will start to view transport in years to come. The displacing effects of car automation and electrification will not be mediocre. All Tesla needs is electric vehicle adoption to take off.
When the autonomous car movement comes to fruition too, people will lift their heads and realize Tesla has been making headway in the market all along. Munster believes adoption will not be an issue for Tesla Inc (NASDAQ:TSLA). The Loup CEO considering the young automaker’s current developments and the promise of the Model 3.
In three years Tesla will have put around 2 million attractive and more affordable electric cars on the road. All of them will flaunt the most cutting edge in self-driving tech as well. This transformation will take place “virtually overnight”, says Munster.
Loup Ventures finds great confidence in Tesla Inc. Securing just 25% of the electric car market within the next decade would rake in $105 billion. That’s not impossible with the Model 3’s position. The research giant is also far more bullish than most. From his analysis, the addressable Tesla consumer base sits at around 11 million a year. That happens to be a lot more than the average 4 million the rest of Wall Street expects.
The stock situation for Tesla Inc
Tesla Inc (NASDAQ:TSLA) is scaling up. That involves a lot of disruption while it prepares to push out around 500,000 cars over the next 12 months. The low delivery rate reported this week is a part of that, but near-term investors lose sight of the bigger picture. Munster stands by these sentiments too. He believes near-term investors will get tired of the risk posed by low deliveries.
Apple faced a similar situation a decade ago, Munster points out. The corporation was shrouded in a cloud skepticism, selling just 50 million iPhones per year in 2007. That figure is conservative now compared to the more than 230 million iPhones sold yearly.
“Long-term [Tesla] investors should remain confident that production will ramp in time and the company will capitalize on growing demand for the Model 3.” The Model 3 is pretty much the Apple iPhone of the motoring world.
Apple Inc just entered its 4th financial quarter. That means 3rd quarter earning are right around the corner. The company also made news of its next revenue result date this week. Yesterday, the makers of the iPhone 8 reminded investors to check in on August 1st. Apple’s news ventures came into focus around the same time as the report. Focus lands on the company’s services, which should be worth as much as a Fortune 100 company soon.