A note published on Wednesday, December 17, by Morgan Stanley auto analyst Adam Jones, forecasts that the EV manufacturer Tesla will miss its 2020 goal by a very large margin.
Owner Elon Musk has set a target of 500,000 units; however, Jonas says that this is very optimistic and the real number will be closer to 300,000 vehicles, a considerable 40 percent less.
According to CNN, Jonas believes that the main reason is that the Model III premium saloon, which will be Tesla’s contender in the BMW 3-Series segment, is predicted to bear a price tag close to US$60,000, nearly double the US$35,000 originally expected.
“While nobody buying a Model S today (for nearly US$105,000) is doing so to save on their monthly expenses, the longer-term story is far more dependent on the volume success of the Model III”, he wrote, noting that falling oil prices might also play a significant tole in the mid-size EV’s success.
On the other hand, Jonas continues to recommend Tesla shares. In spite of lowering his original estimate of US$320 per share to US$290, he says investors’ gain will be more than 50 percent.
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