Tesla Inc.’s fourth-quarter deliveries came in below expectations, but progress made in Model 3 production and more realistic production targets left Instinet analyst Romit Shah feeling pretty bullish on the stock. “While our forecasts decrease for the first half of 2018, we are encouraged by the progress on Model 3 production and continue to expect Tesla to deliver substantial (+100%) revenue growth in 2018,” Shah wrote in a note published Friday following a series of electric vehicle announcements at this weeks CES show in Las Vegas. “We believe that Tesla may have finally set a beatable production target while also allowing itself to address customer feedback and prioritize quality control.” While GM’s Chevy Bolt electric vehicle finished the year on a strong note and along with the Nissan Leaf offers the main competition for Tesla, “we believe that these vehicles are in distinctly different classes relative to Tesla’s lower to mid-luxury Model 3 sedan,” said Shah. On the Byton, the international brand of Chinese EV startup Future Mobility Corp., Shah said Chinese original equipment manufacturers seem best equipped to challenge Tesla, but are likely to focus for now on their huge domestic market and expected growth in the luxury segment. “China remains Tesla’s third largest region and second largest country by sales volume, per our estimates,” said the analyst, who rates Tesla a buy. Tesla shares were slightly higher on Friday, but have gained 46% in the last 12 months, while the S&P 500 has gained 22%.
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