Analysts predict Tesla a possible crisis of overproduction

Tesla’s ambitious expansion into the international market gained momentum in the beginning of the year, with the first batch Model 3 shipped to China and Europe. However, chances are high that the manufacturer may be between the two extremes of production.

Last year, Tesla was struggling with trying to meet deadlines of delivery, now, as experts predict, the CEO Elon musk, will have to solve the problem of excess production.

The total production and the number of delivered Tesla in 2017-2018 © news.alphastreet.com

Overall Outlook the company is optimistic, analysts are impressed by the stable cash flow and reduce risk of concerns about management’s ability to repay the debt. Forecast issued at Tesla predicts an improvement in profitability and cash flow in the first quarter of 2019 and beyond.

Meanwhile, Tesla may face difficulties in maintaining its market share in the segment of electric vehicles, as automakers around the world seek to join the revolution of electric vehicles. As competition becomes more intense, the Tesla will be forced to change strategy to achieve absolute stability and a constant demand to avoid a crisis of overproduction.

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