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Tesla could double in 12-18 months: Analyst

It's been a rough road lately for Tesla investors.

The stock is down more than 38% this year as the collapse in gas prices cuts into the demand for alternative energy vehicles.

But while some analysts on Wall Street are downgrading their ratings on the stock, Colin Rusch, Oppenheimer managing director, remains bullish.

"The core competence of this company is making high quality products that serve the luxury market," Rusch said referring to the Model X.

Rusch thinks the stock could reach $340/share in the next 12-18 months.

Tesla Model X is presented during a launch event in Fremont, California last September.
Susana Bates | AFP | Getty Images
Tesla Model X is presented during a launch event in Fremont, California last September.

Pacific Crest recently expressed concern over a lack of demand for the vehicles. Meanwhile, other analysts worry about continued production glitches.

Rusch's bullish stance is mostly based on the release of the new Model 3, due out next month.

"Our price target is looking out to a successful ramp on the Model 3," Rusch said. "As we look at the balance of the year, we're looking for continued progress on both the giga factory and the Model 3."

Tesla reports earnings after the closing bell today.