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Tesla Inc Can Actually Hit $500 Thanks To Model 3

Tesla Inc Model S Elon Musk Shares

If investors do not recognize the Model 3, they do not see Tesla’s next big catalyst. Wall Street pardoned CEO Elon Musk’s lofty prediction to push out 1,500 Model 3 cars over the course of the 3rd quarter. Shares remain positive and poised to climb despite the disappointing announcement. This analyst is extremely confident about the success Tesla (NASDAQ:TSLA) will mine from its newest release.

Investors have grown used to Elon Musk falling short of his predictions. Tesla’s lower than expected delivery rates were just a thing this week. The company made 260 Model 3 sedans, far below the set 1,500 mark. The company’s entry into the affordable car market is milder than anticipated. One analyst remains exceptionally bullish about NASDAQ:TSLA, though.

His name is Romit Shah and his daily occupation involves analytics work at a Nomura. In a report released this week, Shah pegged NASDAQ:TSLA shares at $500. The new Model 3 is Tesla’s next major stock price booster, according to the analyst. Thanks to the company’s efforts to grow its production rate, revenue will soon get an “unprecedented run-up”.

Tesla Motors Inc (TSLA)
The incoming Model 3 from Tesla Motors

It was an ambitious assertion to make, that the company could speed-line its production that fast. It seems even more so now with the benefit of hindsight. Shareholders have shrugged the whole thing off. It is vital that Tesla gets the Model 3 out safely and in the best way to ensure every vehicle is of quality. Running wild just to meet the confident guesses of its chief exec would do more harm than good.

Risk a Tesla Model 3 Recall or Disappoint Investors? $500 (NASAD:TSLA)

This does, however, mean that those in line to get the new car will wait longer. Tesla has to pick between two hard moves. Should the company risk the confidence of its investors or risk pushing out defective cars? Regardless of its rate of production, shareholders can all agree than a Model 3 recall is the last thing Tesla need right now.

The report by Romit Shah reveals there is confidence that Tesla’s push into the affordable EV market will succeed. The start of the next decade will have the firm pulling in revenue of almost $60,000, according to Shah. His prediction of $500 also makes him the most confident analyst to speak up in a while.

The Elon Musk car business has a magnificent lead over anyone getting into the market now. Romit Shah says this is it best advantage. That, and the fact that Teslas have already proven their worth to the world. Not only can they span exceptional distances on a single charge, but they outdo their traditional rivals in a host of other aspects, too. That includes vehicle acceleration, safety, and consumer satisfaction.

Shah asserts that anything Tesla is up against now is “largely inferior.”

Tesla (NASDAQ:TSLA) has secured a lot of leeway for itself. This is proven by this week’s positive reaction to the Model 3 production rate. Investors seem to be on board with the fact that a slow and successful release is better than a rash and catastrophic one.

The new EV has a starting price of $35,000. This essentially opened it up to a lot of demand. Understandably, the Model 3 now allows many more admirers to get a Tesla of their own. Gone are the days where the brand was exclusive to wealthy and experimental customers.

It was met with a reservation list of half a million. The new Model 3 is designed to reach and appeal to a wider range of people. This is unlike the aims for the Model S or Model X, which still did their jobs effectively. Tesla shines a bright spotlight on the future of the auto industry. Its rise has prompted market giants such as Jaguar Land Rover, Volvo and Daimler to commit themselves to producing EVs, too.

But good ideas become widespread soon enough. Tesla Inc is facing more competition in the very near future. This puts pressure on the firm’s need to pick up its rate of production. However, quality reputation and customer assurance is far more vital for the Model 3 than faster production rates.

Learnbonds would like to read your comments about Tesla (NASDAQ:TSLA) (NASDAQ:TSLA). Tell us how you feel about the company’s recent disappointment. Was the miss expected, or should the company be held to its promises?

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Mvusi Ngubane

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