Morgan Stanley analyst Adam Jonas has said Tesla’s Model 3 won’t launch until the end of 2018, a year later than Tesla anticipates it to enter volume production.
It seems as though there’s never ending speculation on the arrival of Tesla’s (NASDAQ:TSLA) Model 3, and that’s not about to change.
On Wednesday (November 23), Morgan Stanley analyst Adam Jonas, suggests the vehicle won’t be released until the end of 2018–nearly a year behind schedule–sparking a “potentially worrisome development” for the company, The Street reports.
Elon Musk, Tesla’s CEO, said a “Part Three” unveiling will happen sometime in the spring of 2017, according to Business Insider. However, Jonas’ prediction comes after Tesla has stated it plans to enter production for the model in mid-2017, with volume production by the end of the year.
What’s more, Jonas expects the company will struggle to fulfill its 400,000 preorders, and will only produce 60,000 units in 2019, but picking up to 130,000 in 2020.
In a note sent to clients, Jonas’ said:
We continue to believe the ultimate outcome of Tesla’s fundamental direction and share price performance will be dominated by its core automobile and transportation business. At a high level, we view Tesla’s share price as influenced by 3 main factors: (1) The quality and appeal of its cars, (2) the pace of cash consumption, and (3) the company’s ability to access capital markets to fund ambitious investment and growth objectives. We see the current business of selling high performance electric cars as largely a funding strategy. The bigger mission remains developing a sustainable transportation ecosystem.
Jonas added, “We continue to forecast a Model 3 launch at the very end of 2018 (more than 1 year later than company target) with 60k units in 2019 and 130k units in 2020.”
It’s reported that Tesla plans to deliver up to 100,000 of its new EV’s before 2018. On the contrary, however, with nearly 400,000 reservations it’s possible many of those who made reservations won’t receive it until 2021, should Jonas’ prediction hold true.
On that note, another electric vehicle is in the works: Chinese company NextEV recently released its NIO brand and the first vehicle from that line called the EP9. The car allegedly holds the fast last time for an EV, which was done at the Nürbhurgring Nordschliefe test track in Germany.
Watch the video below:
As lithium-ion batteries are an important factor in Tesla’s vehicles, and with competition creeping up on the company, it will be interesting to see how the sector is affected upon the Model 3’s release.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.