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After strong first-quarter sales, Tesla is ready to launch its Model 3 in the second half of 2017 and with this investors are now looking up. Model 3 launch might look promising, but investors should be careful with the risks too.

Following company’s first-quarter sales, Tesla’s stock rise up with shares are up with an impressive 63% and is trading at about $297. With Tesla hitting all-time high, nearly $300, what is there for investors?

By selling over 25,000 vehicles, Tesla is up with 69% over year. A quarter ago, deliveries of Model S 12,420 and Model X were 2,400. While this year, deliveries of Model S were 13,450 and Model X were 11,550.

More substance is added company’s longer-term and more ambitious growth plans because of Tesla’s ability to hit targets.

As Tesla is planning to launch Model 3 launch during the second half of 2017, it is highly expecting its annualized vehicle manufacturing to grow up from a current rate of about 100,000 units to 500,000 units in 2017. Tesla can ramp up the production and build the vehicle in meaningful volumes, due which it has gained stocks.

Given the speculative nature of the growth of Tesla, investors should also consider risks associated with investing in its stocks.


Charlie Tarpley

For any feedback and suggestions contact author at Charlie.Tarpley@themarketdigest.org

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