Tesla is expecting a “very strong” 2019, according to an analyst who said the electric car company’s Model 3 continues in high demand, CNBC reported.
Dan Ives, an analyst at Wedbush Securities, said strong Model 3 sales should in the near future reduce Tesla’s need to raise capital, which has been an ongoing issue since the company went public in 2010. Looking to 2019, Ives predicted Tesla’s expenses to be $2.2 billion-$2.3 billion.
Tesla is “poised to generate improved profitability and cash flow that puts the risk of a capital raise in the background for now,” said Ives, discussing Model 3 production and demand, MarketWatch reported.
The analyst said Wall Street is aware that some European shipments might occur in the second quarter instead of the first, which could skew results. But, he added, “Pent-up demand looks robust on this new European frontier for Musk & Co heading into 2019 with China also a major growth catalyst on the heels of recent price cuts.”
Tesla shares increased by 3% in early Wednesday trading, as Wedbush pointed to the company’s market potential in the New Year.