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Wedbush Managing Director Daniel Ives told FOX Business he is still slightly pessimistic on the company and questions Tesla’s sustainable growth rate for the Model 3 in the second half of the year.
“The street continues to be a glass half-empty view here,” Ives said on “Countdown to the Closing Bell” Friday. “I view it as a major step in the right direction but still there’s a lot more wood to chop ahead.”
The majority of Tesla’s production for the quarter was for its most affordable vehicle, the Model 3.
Ives said the Model 3 price point doesn’t leave much room for Tesla to meet its long-term profitability goals.
“Model 3, right now, that’s the lynchpin in terms of the growth going forward,” he said.
When asked whether Musk should step down as Tesla’s chief executive, Ives said, “No way. He continues to be…the core DNA of Tesla.”
Tesla shares closed slightly lower on Friday.
This story has been updated to correct the number of vehicles Tesla delivered in the second quarter.