This Analyst Says the Demand for Tesla’s Model 3 is Looking Very Strong

According to a Wedbush Securities analyst, Tesla’s Model 3 demand is looking very strong and it will continue to be strong.

Analyst Dan Ives has said the Model 3 midsize electric sedan “looks looks very strong into 2019 and beyond.”

Ives cited that underlying drivers for the electric vehicle market are likely to push consumers toward Tesla’s cheapest passenger car, at a time when many automakers are abandoning sedans in favor of SUVs.

Ives says that this is a pivotal inflection point in the electric vehicle maker’s story and that such demand for the vehicle will reduce Tesla’s risk of having to raise capital again soon. He expects the company to spend $2.2 billion to $2.3 billion next year.

The analyst has said China looks like a “major growth catalyst” with the company’s recent price slashes in the country.

Shares of the stock were up almost 2% before the market opened on Wednesday.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.