One thing many analysts and investors have considered with companies such as Tesla Inc. (NASDAQ:TSLA) is how they will fare in the wake of auto sales in the U.S. which have appeared to plateau of late. While Tesla’s newest Model 3 does have an impressive backlog of orders (the first of the vehicles was shipped this past week), those assessing how Tesla is likely to perform over the medium-term will be looking very closely at how the EV automaker performs in terms of deliveries and improved (or deteriorating) losses over the next few quarters.
Those investors who have bought into Tesla’s long-term plan have largely ignored the massive losses the car maker has posted nearly every quarter, indicating that CEO Elon Musk likely has a very long rope courtesy of his investment base to do what needs to be done to create maximum long-term profitability. Becoming one of the world’s largest automakers may be a goal decades away, and investors who are in it for the long haul have good reason to ignore short-term results in favor of longer-term performance in the ability of the company to hit targets.
With the Model 3 officially being shipped on time, it is looking more and more likely that investors will continue to pile into this stock, with the hope that revenue and profitability targets fall in line. The Model 3 is shaping up to be a revolutionary car, and with Tesla at the forefront of automobile innovation, it stands to reason that further upward momentum may be in the cards for Tesla.
Invest wisely, my friends.
