Tesla (NASDAQ: TSLA) shares may face headwinds recently due to concerns over corporate performance in the first quarter and Elon Musk's ongoing issues with the Securities and Exchange Commission (SEC), but a Wall Street analyst has argued that the electric car manufacturer's operation performs better than expected.
Wedbush analyst Dan Ives, along with his colleague Strecker Backe, recently took a trip to Tesla's Fremont factory in California and the company's Gigafactory 1 in Nevada. At the end of their visit and analysis, the two analysts doubled their bullfighting, partly because of the progress made by the company with battery and power generation.
A visit to the Tesla's Fremont factory will not be complete without a tour of the infamous tent that holds a model 3 assembly line. While the burst structure has been polarizing and a constant target of ridicule from Tesla's critics, Ives noted that tent-based assembly line actually works very well, with on-site processes that are robust and streamlined. "It was painful in how effective this process has been in the tent. This is not a company that lowers production," noted Ives.
Wedbush analysts were just as impressed with Tesla's progress in its operations at Gigafactory 1
Given Tesla's recent challenges, which include Elon Musk and SEC's ongoing skirmishes, Wedbush analyst claimed that the long-term strategy of the electric car manufacturer remains stable. "I consider this a company where it would never be an easy way to Tesla. Many of the problems are unfortunate with the SEC and Musk, and it has created a sideshow that has been a bit of an overhang on the name. I look at the name as the first gathering of what I see as a massive EV transformation that will happen over the next decade, "Ives said.
Tesla is currently completing its quarterly Q1 Q1 2019. The company has difficulty delivering Model 3 to China and Europe, the first two foreign markets of the vehicle. A leaked email from Tesla senior vice president Sanjay Shah also suggested that Tesla rallies his staff to deliver up to 30,000 vehicles in the second half of March.
Dan Ives has a price target of $ 390 per. Share for Tesla.
Disclosure: I have no ownership in TSLA shares and have no plans to launch any positions within 72 hours.