Remote upgrades and anticipated 2017 Model 3 deliveries drive Tesla bulls
Mike Juang, CNBC
May 31, 2017
Tesla makes money not just on the initial sale, but on remote upgrades.
- The company is "doing something no one else is able to do."
- Future success depends on a timely Model 3 release.
Tesla bulls believe in the electric car maker's strategy, analyst James Albertine told CNBC on Wednesday.
Not only does Tesla sell a fairly upmarket vehicle, Albertine said the company continues to get revenue from its drivers through over-the-air updates and remote upgrades.
"From an automotive perspective they're doing something no one else is able to do in the industry right now," the senior analyst at Consumer Edge Research said in an interview with "Power Lunch."
The trick for Tesla, said Albertine, is to maintain the momentum with the release of the upcoming Model 3, a car aimed at mass-market consumers. "I'm more optimistic they can start to deliver in the single-digit thousands" this year, he said.
Selling new models also gives Tesla a chance to update the public on model progression, Albertine noted.
Shares in Tesla closed up 1.8 percent at $341.01 on Wednesday.
Tesla CEO Elon Musk made headlines Wednesday as a proponent of the Paris Agreement on climate change, and in a series of tweets urged President Donald Trump to keep the U.S. in the accord.