Since reporting its first-quarter deliveries, shares of electric vehicle maker Tesla, Inc. TSLA, which had a strong run-up this year, have been on a lean trot.
An analyst, however, sees the possibility of a reignition of the rally.
What Happened: Tesla’s total addressable market, or TAM, will increase from 30% to 100% of the industry due to the addition of Cybertruck and the rumored $25,000 Model 2, Black said.
In 2020, the Model Y added 40% of the crossover utility vehicle market to Tesla’s TAM, according to Black, which resulted in Tesla’s stock increasing by 743%, compared to the Nasdaq 100 index, which increased by only 48%.
See Also: Everything You Need To Know About Tesla Stock
EV Market Share To Rise: Black expressed confidence in Tesla's global EV market share returning to 20%, premised on the Cybertruck and the Model 2 for the masses.
"Both huge TAMs [are] not currently being advanced. Same as M-Y in CUVs in 2020," he added.
He was replying to a comment by one of his Twitter followers who expressed concerns that Tesla will likely continue to bleed share as there is “a new EV every day on the market.”
Price Action: Tesla closed Wednesday's session down 3.35% at $180.54, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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