Eight Years After Going Public, Analysts Now Expect Tesla to Make Profits
Speaking to reporters, Jamie Albertine, an automotive analyst, shared that he expects Tesla to start making profits as early as this annum. During a CNBC sitdown of the “Power Lunch” show, Albertine mentioned that he believes that Tesla’s heightened production trajectory is likely to see them turn profits. In the next two quarters, he foresees them testing the price target between $385 and $389.
Even with the impressive stock prices, the company has always struggled to find a comfortable yearly footing. In 2017, the company lost about $2 billion and another $3.4 billion in cash following capital investments. Albertine opined that investors seem to like the CEO, Elon Musk, because he’s regarded as an inventor. That paired with the fact that Tesla is the most in-demand auto manufacturer on Earth means that their faith in the company is steadfast.
Global Equities Research managing director, Trip Chowdhry, mentioned that he expects Tesla’s revenues this annum to surpass the $20 billion mark. Chowdhry cited that he arrived at this figure after seeing the rapid uptake in Telas models. He expressed his surprise at the numerous individuals who were buying Model 3’s without ever test driving them. He said that this was an almost unheard of phenomenon, not just in the auto industry, but anywhere else.
Chowdhry added that most people are reluctant to part with $50,000 without first having a feel of the product. Incredibly, the $20 billion in revenues was reached without the company ever having to advertise itself in the public space. Because of all these contributing factors, he believes that Tesla is unrivaled in terms of business performance.
With all the forward momentum the company has been facing, one would be forgiven to think that Tesla has not had its fair share of obstacles. The company is in dire need of more factories and larger product lines. Gordon Johson, a Wall Street analyst made a point to caution investors on “Closing Bell” not to be overly enthused by a man, instead, he referenced that there was an inherent need to first review the numbers before coming to a decision.
Johson shared that Tesla had not been handling its finances in the best way possible. He pointed out the fact that Tesla burned about $3.4 billion in 2017 and about $1 billion dollars in the last quarter. With that in mind, he pointed out that he was not so hot on Tesla’s futures. He also shared that he found the whole discussion on Tesla’s future as ridiculous. This is because most investors were simply in love with the novel idea of a brilliant inventor, without much regard to the math.
Albertine, who doubles up as Consumer Edge’s managing partner, shared that his financial research ventures have led him to conclude that Tesla was not out of the woods yet. For them to be feasible, he expects them to meet their targets before the end of the second quarter. If they don’t, he expects them to have a lot of issues in-house before more details emerge about the state of the second-quarter data in early August.
All the same, Albertine is of the opinion that if Tesla can show that they are profitable with 5,000 units per week, then there will be no need for Musk to hit the panic button. At present, he expects the next couple of quarters to be quite revealing. Notably, Tesla’s contemporaries in the tech scene, Amazon, Twitter, Yelp and Netflix took ages before they recorded profitability following their IPO’s.
More in Business
The Crazy Story About How Comedian Katt Williams Allegedly Lost $59 Million of His Fortune
It’s ironic how it’s actually comedians, whose job is making other people laugh, that usually tend to live troubled and unhappy...July 1, 2019
Here’s Why These Nuns and Katy Perry Are Fighting Over Multi-Million Dollar Former California Convent
Katy Perry has been involved in quite a few controversies throughout her career as a pop star. But none of them...June 30, 2019
Rihanna is Living Her Best Life With Billionaire Boyfriend Hassan Jameel — Here’s Proof
Rihanna has surely gone a long way from her humble beginnings in her home country of Barbados. Not only is she...June 30, 2019
Gayle King Signs a Huge Contact with CBS, And You Won’t Believe How Much She’s Being Paid!
The renowned TV host, Gayle King, has knocked the ball out of the park with her recently CBS renewed contract that...June 29, 2019
The Amazing Story of How Will Smith Became a Real Life ‘Fresh Prince’ With an Expansive Real Estate Portfolio
Will Smith has had one of the most interesting career tracks in Hollywood. Starting out as a rapper donning the name ‘The...June 23, 2019
Experts Say That You Can Never Succeed in Business If You Do This
Everyone wants to be a successful businessman, but over time, we notice that some people have a better chance at being...June 23, 2019
Pink Lost the Grammy But Her Kids Consoled Her With This Heartwarming Gift
There is no better consolation for an entertainer than winning a Grammy Award. Every star wants to hold that prestigious award in their...June 20, 2019
Are The Presleys Broke? Elvis’ Ex-Wife Priscilla is Selling This Property to Save Her Daughter
With how popular the late Elvis Presley remains to this day, most people would think that his immediate family will all...June 19, 2019
Jay-Z Just Declared World’s First Ever Billionaire Rapper–Here’s the Surprising Non-Music Business That Bolstered His Fortune
It’s no secret that entertainers earn a lot of money. But not many of them can accumulate a billion-dollar fortune. Rapper-turned-businessman...June 19, 2019