- Since a JPMorgan analyst predicted a headwind for Tesla in 2018, TSLA is up 49%.
- Traditional car makers have struggled to present a challenge to Tesla’s dominance in 2019.
- 2020 looks even brighter for the automaker with rising sales and maturing management.
In 2018, as reported by CNBC, a JPMorgan analyst said Tesla stock is poised to face a meaningful headwind due to increasing competition from Mercedes Benz (Daimler), Audi, and BMW. Tesla stock (NASDAQ: TSLA) is up from $290 to $432 since. JPMorgan analyst Ryan Brinkman said last year:
When similarly priced high-end long-range electric vehicles become available from prestigious brands with strong reputations for both service and build quality, we believe this could represent a meaningful headwind for Tesla.
Competition is strong but Tesla is way too far ahead of the pack
Most of the concerns around Tesla from analysts last year were centered around whether the company can compete against traditional automakers in the same market.
Even up until early 2019, Tesla faced a serious cash crunch due to major debt payment deadlines, bringing more instability into the operations of the automaker.
However, as the popularity of electric cars showcased by the likes of Audi (e-tron), BMW (i3), and Volkswagen (e-Golf) fell behind Tesla’s Model 3 by a large margin, TSLA stock started to gain new momentum.
Especially in the U.S., Tesla has consistently dominated the local electric car market in the past year. A new report revealed that Tesla accounted for 77% of new electric car sales in the U.S. in November.
The figure comes after the firm maintained a 75% to 85% share of the U.S. electric car market throughout the third quarter of 2019.
Three main potential catalysts in 2020
After being up 48.9% since last year, the company still has significant room for growth in the upcoming year.
Three driving factors for a potential extended rally for…