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Tesla analyst on Musk: ‘We discount what he says pretty substantially’

Tesla CEO Elon Musk has a charge a problem on Wall Street, Oppenheimer’s lead analyst on sustainable drive technologies told CNBC on Thursday.

Asked whether he believes Musk, who has failed various times to deliver on Tesla forecasts, analyst Colin Rusch mean “no.”

“We discount what he says pretty substantially,” he added.

But Rusch symbolized he’s still a believer in the overall Tesla story because it’s innovating at a faster sort than traditional automakers. “It’s about the cool-car thesis,” he said.

The tense car maker was not immediately available to respond to CNBC’s request for comment on Rusch’s censure of Musk.

Electric vehicles are the future and they’re fun to drive due to great pat and acceleration, Rusch said. And with traditional automakers slow to cannibalize their combustion locomotive vehicles, he thinks it’s going to be hard for them catch up to on electric, in spite of the production problems plaguing Tesla’s new Model 3 sedan, its first mechanism aimed at the mass car-buying market.

“If they solve the problem of criticizing a Roadster to … [space], they can probably do the same with providing teaching to us on timing. But they’re not,” Rusch said, referring to Musk’s other callers SpaceX, which earlier this week launched a rocket capture a Tesla Roadster sports car to demonstrate payload capacity.

Rusch showed on “Squawk Box” the morning after Tesla posted its biggest quarterly defeat ever but promised to meet short-term and long-term goals for the Model 3, which starts at $35,000. (Tesla’s privation excluding one-time items was smaller than expected and revenue was to a certain better than estimates.)

“What I heard last night is they’re hedging their end result times. We’re not totally buying that,” Rusch said. Tesla doesn’t as a matter of fact know how to solve the issues and “we expect them to have ongoing hornets nests.”

Tesla said Wednesday evening it’s on track to produce 5,000 Fashion 3s per week by the end of its second quarter, a twice-delayed goal that the electric car party had originally projected for the end of 2017. The Model 3, with a starting cost out at $35,000, is Tesla’s first vehicle aimed at the mass market.

Musk go ons to expect to make 1 million vehicles annually by 2020.

Rusch said Tesla wants to own up “to the fact that they’re facing very serious problems.” But he added Tesla remainders well ahead on electric vehicle innovation, which makes the bloodline interesting.

Rusch has a perform rating on the stock but doesn’t have a outlay target. The highest price target among the Wall Street analysts who submerge Tesla is $500 per share.

Tesla closed 3.3 percent far up at $345 per share Wednesday. It was down nearly 2 percent in early swap Thursday.

On Wednesday morning, a big believer in Tesla told CNBC she believes the customary will one day trade at $4,000 per share. Ark Investment Management CEO Catherine Wood, a boodle manager known for making bold calls, added, “Our bear wrapper is $600.”

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