Tesla's Production Aspirations Underscored By Gary Black: 2.77M Vehicles By 2025 — Major Entry Into $30K Segment 'Significantly Underestimated By The Street'

What Happened: Black, a prominent Tesla analyst, shared this insight on social media platform X on Sunday. He also noted that the company’s current installed capacity stands at 2.35 million units, which includes the new affordable Tesla vehicles set for delivery in the first half of 2025.

Tesla’s management has indicated a “current expected maximum capacity of close to 3 million vehicles,” including the new affordable models, which will be produced on the same manufacturing lines as the current vehicle lineup.

Black also suggested that the market is underestimating Tesla’s Total Addressable Market (TAM) expansion into the $30,000 segment. The Street is currently expecting 2025 deliveries of just 2.07 million and 2025 production of 2.073 million.

“As we saw with the introduction of Model Y in 2020, there is little cannibalization of other models when Tesla enters a new category – here the $30K affordable luxury segment,” Black wrote.

See Also: Anthony Scaramucci, Tim Scott Weigh In Ahead Of Ex-President’s Address At Bitcoin 2024 Conference: ‘Trump’s Move To Court Bitcoin And Towards Crypto Assets Has Shaken The Democrats At Core’

Additionally, Tesla’s second-quarter earnings report revealed a revenue beat but an EPS miss, with the company noting that its 2024 growth rate would be notably lower than in 2023.

Price Action: Tesla stock closed at $219.80, down 0.20% today. In after-hours trading, the stock rose 0.43%. Year to date, Tesla’s stock has decreased by $28.62, or 11.52%, according to data from Benzinga Pro.

Read Next:

Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.