Analyst: Tesla Inc (TSLA) Will Hit Profitability by September

Now that Tesla Inc (NASDAQ:TSLA) has successfully met its latest production goal, the automaker is on the road to profitability in the coming months. That’s the word from Gene Munster of Loup Ventures, who shared with CNBC his prediction for how the next few months will go for Tesla.

CNBC shares the analyst’s insight on Tesla.

Loup Ventures’ Gene Munster predicts the embattled automaker will be profitable by September.

CEO Elon Musk announced Tesla aims to produce 6,000 Model 3s per week by August, but Munster says September is a safer bet.

“This 5,000 production number was the first time in about nine months he’s gotten one right. I think it’s safe to always dial back what he’s saying, that’s why we think [Tesla’s] going to meet the production number by the end of the September quarter,” he said. Munster believes that Tesla will become profitable at that time, but he was also careful to temper expectations.

“If they hit that number, it’s going to equate to 48,000 model 3s produced in the September quarter. That should get them to profitability, slightly profitable,” he added. “It’s not going to be wildly profitable in September, I just want to warn everyone, but… it moves them in the right direction.”

Tesla Inc shares fell $3.82 (-1.14%) in premarket trading Tuesday. Year-to-date, TSLA has gained 7.62%, versus a 2.74% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of B (Buy), and is ranked #3 of 24 stocks in the Auto & Vehicle Manufacturers category.