Tesla to start turning a profit This specific year: Analyst

Tesla may start turning a profit as early as This specific year, automotive analyst Jamie Albertine told CNBC.

“Based on what we’re seeing within the trajectory of production, we think they will be profitable on a non-gap basis later This specific year,” Albertine said Friday on “Power Lunch.” “We think we’ll be testing $385 [cost target], on the way to the all-time high of $389, within the next two quarters.”

Friday marked Tesla’s eight-year anniversary as a public company which has a nearly 2,000 percent stock cost increase. Shares of the electric car company’s stock were just $17 when This specific began trading on the Nasdaq on June 29, 2010, compared with around $345 on Friday.

The only problem: The company has never made money on an annual basis. The company lost nearly $2 billion last year in addition to also also burned about $3.4 billion in cash after capital investments.

however Albertine said investors like CEO Elon Musk because he’s seen as an innovator in addition to also also Tesla has had “significantly more demand than any various other auto any has had on Earth, in terms of reservations for a vehicle.”

Trip Chowdhry, managing director of equity research at Global Equities Research, pointed out that will Tesla’s revenues This specific year will be within the range of $20 billion.

“People are buying style 3’s without even test driving [them],” Chowdhry said Friday on “Closing Bell.” “When did you see any product people are buying, which can be worth more than $50,000, without touching, without feeling, without driving? in addition to also also not only that will, This specific $20 billion revenue has been generated by zero advertisement dollars. This specific can be the power behind Tesla. No various other company anywhere on the planet comes even close.”

Still, Tesla’s growth efforts face many obstacles, including the need for more factories in addition to also also expanded product lines. Albertine said Musk will likely invest in factories in China in an effort to move in to the Asian market.

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