BofA Remains 'Skeptical' On Tesla (NASDAQ:TSLA) Model 3 Production After Investor Meetings, Expects Capital Raise
BofA Remains 'Skeptical' On Tesla Model 3 Production After Investor Meetings, Expects Capital Raise. Murphy regards Tesla’s construction of a Shanghai factory “prudent” in helping evade tariffs and penetrate a significant global market. What’s more, he concedes that Tesla’s benefiting from a vacuum in the electric vehicle market, even as competition rises on all sides. (See the analyst's track record here.). But the BofA analyst remains unconvinced that Tesla will sustain and continue to raise production rates. “Although TSLA is confident in the sustainability of its production rate, based on its past challenges in ramping up production, we remain somewhat skeptical and believe it will take some time before the Model 3 production reaches material scale."