Tesla still facing 'fork in the road scenario,' says Wedbush
Wedbush analyst Daniel Ives notes that Tesla held its annual shareholder meeting, where CEO Elon Musk provided an update on Model Y as well as Gigafactory-China, outlined the roadmap and status for the Pickup and Semi, while providing insights into the current quarter, Model 3 demand, and battery production. The analyst highlights that Musk stated the company has decent shot for a record quarter on all metrics, Tesla's product roadmap relies on its ability to scale the production of cells and battery packs, and Tesla is on target to grow its entire fleet by 60% to 80% this year but that it is "hard to be profitable" at that rate of growth. Ives continues to believe in the near-term Musk and Tesla are facing a "fork in the road scenario" with Model 3 demand, and thinks the company needs a significant rebound in Model 3 deliveries this quarter as well as into the back half of 2019 for it to provide sustained profitability. The analyst has a Neutral rating and a $230 price target on the shares.