Credit Sussie has awarded Tesla Motors Inc. (NASDAQ:TSLA) with a Buy rating and it seems that it is going to continue supporting its verdict strongly. This is because Tesla Motors Inc. (NASDAQ:TSLA) seems to be making a strong impression upon the electric car market, since its demand is continually escalating. However, other sources from Wall Street do not agree with this assertion of Credit Sussie. These analysts reckon that Tesla Motors Inc. (NASDAQ:TSLA) is going downhill and assert that its demands are gradually decreasing.
Sales in China have been going soft for Tesla Motor Inc. (NASDAQ:TSLA) for quite a while now, and in this context, the company’s Model S has begun to grow old and the launch of its new model X would probably be made as this year reaches its culmination. Despite these drawbacks, Galves pointed out this fact that Tesla Motors Inc. (NASDAQ:TSLA) has carried approximately ten thousand orders into the year 2015 which have yet to be fulfilled. Furthermore, there are almost 1400 orders which are yet to be delivered and this delivery is most likely going to take place in the present quarter. Galves made all of these statements for investors on Sunday, and claimed that these statistics would compensate Tesla Motors Inc.’s (NASDAQ:TSLA) apparently drying demand levels.
In accordance with its assertion Credit Sussie also brought forth some important points from the report submitted by Tesla Motors Inc. (NASDAQ:TSLA) in FY14. This 10-k filing has been receiving the core attention of all sorts of heated arguments and debates for quite a while now. The analysts supported its views about the escalating demand of Tesla Motors Inc. (NASDAQ:TSLA) by pointing out that Gigafactory would serve as a major proponent of its EV supply in the year 2016. This factor would go a long way in propelling the margins of the motor company.
Tesla Motors Inc.’s (NASDAQ:TSLA) storage system sales have been going up the scale and the company claims that it they would climb even further up in 2015. In accordance with this, Credit Sussie stated point blankly that its stock projection did nothing to affect this venture. Other analysts from Wall Street have been dubious about these claims of Tesla Motors Inc. (NASDAQ:TSLA).
But Bank of America Merrill Lynch threw cold water on the aspirations of all those investors who were aspiring to try their luck on Tesla Motors Inc.’s (NASDAQ:TSLA) stationary storage. It did this by reminding the investors of how long the pay-back period for customers can probably be. This fact was also pointed out that Tesla Motors Inc. (NASDAQ:TSLA) has so far been unable to close the gap between its present EV batteries and the deployment of energy storage units for residential purposes.
Another criticism brought forth by Dan Galves and then questioned in turn was regarding the allegedly small investment of $300 million for the development of Gigafatory. In opposition to this assertion, Galves claimed that allocation of $300 million for this purpose was perfectly appropriate, especially if it is considered in line with the company’s expenditure of $60 billion on the battery plant in the previous year.
