Tesla Motors CEO Elon Musk has made it clear he believes the Model 3 is the best car in the world, and analysts are taking his words to heart.
“Tesla is in a pretty tough spot,” said Robert Rohde, managing director of investment bank BMO Capital Markets.
“They have a very competitive price point.
They are making some significant price cuts and a lot of additional competition.”
Tesla also announced on Monday that it is lowering the price of its Model 3, to $37,000 from $42,000.
Musk has said the car will eventually hit $100,000, but analysts say the company could see that price drop as soon as next month.
The automaker also announced that it will sell 1,000 units of the car for $1,800, and has plans to expand production of the model to about 1,600 vehicles a month by the end of 2020.
“We think the Model S is the most successful product on the planet,” Rohde said.
“And we think it is going to remain that way for a long time.
It is a very successful product.”
In a separate report, BMO also said that Tesla is planning to build 200,000 Model 3s by the start of 2021.
It’s not clear when that will happen, but Musk has already said that the company will sell around 1 million of the cars a year for at least the next three years.
That will make it one of the largest automakers in the US, and would make it the largest automaker in the history of the world.