Wall street analysts, however, were not as effusive as Musk, questioning future profit sustainability in the long-term horizon.
“TSLA may have crossed the line to become self-funding,” said RBC analyst Joseph Spak.”But is it sustainable? Near-term probably yes. Longer-term more questions.”
“While Tesla is a very innovative and disruptive company with strong growth ahead via disrupting large addressable markets, it is also a classic story stock that is difficult to value given that the investment decision is often qualitative rather than quantitative,” added Spak. “Thus, near- to medium-term performance is likely to be determined by expectations and delivering on targets. While we are positive on the long-term opportunity, the stock appears to fairly balance medium-term assumptions with execution risk.”
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