Gerber Kawasaki Wealth & Investment Management is an independent advisory with offices in Santa Monica and Los Angeles. The firm has over $1 billion in assets under management. Gerber Kawasaki is convinced of the potential of Tesla. One of its partners said the firm believes that Tesla’s sales of more than $100 billion a year will be realistic over the next three to five years and the market value of shares may increase in parallel.
Gerber Kawasaki's Hatem Dhiab joins Nicole Petallides at TD Ameritrade Network to break down Tesla's current production and where he sees the auto tech giant expanding into the future. Dhiab is a founding member and a managing partner and an investment adviser principal. He says that the entire automotive sector is now in decline, but Tesla, thanks to its sales model, which assumes that people primarily buy cars through an online store, is now virtually unaffected by the COVID-19 epidemic.
Dhiab notes that Tesla is increasing production in China and the interest of Chinese consumers in the company's automobiles is high, as evidenced by sales reports. In addition, the automaker reported record deliveries of 1Q, and the number of cars produced is even more impressive, given the situation with COVID-19. Therefore, Dhiab does not see real moments that could adversely affect the company.
Tesla is in a position to dominate every category in the auto sector, says Dhiab. “If you think about the next 3 or 5 years, it’s tough not to see this company having $100 billion-plus in revenue.” The analyst considers the company in the long run, he said, that in 2019, Tesla's market capitalization was just under $25 billion. And this growth can also be extrapolated to a share, Dhiab said: “Based on Tesla’s current market value of about 140-145 billion dollars, it can also increase three or four times over the specified period. "
The analyst himself is delighted with Tesla's cars, according to him this is the most exciting car of those that he has ever driven. Autopilot, a large screen, constant software updates, all this makes it unique.