This will be advantageous for Tesla as it enjoys a strong position in the electric vehicle market. It could help the company improve profits and cash flow going into next year thereby reducing the need to raise capital. Ives rated Tesla’s stock as Outperform.
Tesla to pay tax credit amount to customers if it fails to deliver the ordered cars
The scope for the international sales of Model 3 appears to be widening. The company is anticipated to see strong growth in China due to the recent price cuts. The Model 3 shipments and delivery in Europe seem to be on track and even though Tesla might face slight delays during the first half of 2019, the demand appears to be strong.
However, in 2019, investors will have to keep an eye on how Tesla balances supply and demand along with its Model 3 production as well as the profits and margins trend. Tesla’s shares climbed higher on Wednesday following the bullish outlook. As of 1:00 pm ET, the stock was up 4.5%.