Analyst: Tesla Model X Production Ramp Up To “Progress Quickly” Once Re-Designed Parts Become Available
Ahead of tomorrow’s Q4 earnings call for Tesla Motors, most of the major industry analysts released notes in regards to the electric automaker.
Several of the notes point towards a bleaker future for Tesla, with a lot of the analysts downgrading Tesla, but Credit Suisse analyst Dan Galves reiterated his Outperform rating for Tesla and stands behind his $325 price target.
Perhaps Galves is bullish because of some inside information he’s received related to the Model X production ramp-up.
According to Galves, Tesla had some hiccups with Model X production, but the issues are now nearly a thing of the past. Quoting Galves:
“We believe that several minor but unacceptable quality issues existed on early production…the company slowed down the line to tweak the production process (fit / finish and trim issues appear to be fully fixed) and, in some cases, to wait for re-designed parts. According to mgmt., the production process is quite dialed-in right now, there are no critical unresolved design issues, and once re-designed parts are available, the ramp should progress quickly. Meanwhile, Model S production continues to run at very high levels.”
We’ll be covering Tesla earnings call in real-time tomorrow (Wednesday February 10) at 5:30 PM EST.
Source: Street Insider