Tomahawk, WI 08/22/2214 (Basicsmedia) – Tesla Motors Inc. (NASDAQ:TSLA) has arguably been the best performing stock in the auto industry over the last 18 months as investors continue to debate whether it is the next game-changing thing in the ever competitive auto industry. CLSA’s Andrew Fung in an interview on CNBC said he believed Tesla remained well-positioned to enjoy the benefits of high volume production while establishing a sustainable position in the industry that should allow it face any competition.

“Tesla Motors Inc. (NASDAQ:TSLA) currently only addresses 5% of the luxury market in the U.S and only recently started sales in China, so we see significant opportunities for volume growth overtime. We expect volumes to double next year with the launch of Model X and grow to four hundred thousand units by 2020,” said Mr. Fung.

Tesla Motors Inc. (NASDAQ:TSLA) has already shifted its focus to reducing battery costs that continue to be the biting problem for the company at the moment. The company is already in advanced talks as it seeks to develop its own Gigafactory that should address the issues of battery costs for once and for all, expected to spur the company’s growth opportunities.

Fung believes Tesla will accumulate 40% ED market share at the back of its Gen-3 vehicle despite the impending challenge in terms of competition from BMW.

“We believe BMW will be a serious player in the premium market over the next couple of years the V13 is a good product, and we think will be a fair comparison against the Gen-3 product from Tesla. On the other hand the other automakers are largely not playing in the space over the next couple of years, so we don’t see significant pressure from other competitors over through 2020,” said Mr. Fung.

 The biggest hurdle at the moment for Tesla Motors Inc. (NASDAQ:TSLA) is increasing its vehicle production as the company continues with its roll out in key markets such as China. The company is also developing charging stations that should make it easy for people to charge vehicles once bought. Having delivered about 22,500 vehicles last year, Tesla expects to deliver about 35,000 vehicles this year.

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