Tesla Motors will be unveiling its mass-market electric car, the Model 3, to the public Thursday evening at its facilities in Hawthorne, California. Customers have already lined up down the block to put down a $1,000 deposit, and one shareholder has an explanation.
"We all know through witnessing, watching, observing the auto industry, that demand is a lot harder to manufacture than manufacturing [cars] is harder to execute on," said Drew Cupps on CNBC's "Power Lunch." Cupps is a Tesla shareholder and president/CIO of Cupps Capital Management.
"While people have certainly critiqued Tesla for being a quarter late or for not hitting this number or that number, when you take a step back this is a company that's grown between 30 and 50 percent a year. ... [The Model 3] is that third building block to grow at probably 35, 40 percent a year for the next five years."
The Model 3 follows Tesla's first two car iterations: the Model S and the Model X. As the first mass-marketed car, the 3 will have the following features: autonomous-ready, 200-mile range, new battery composition, $35,000 price tag and a long warranty
"This is tough stuff, no two ways about it," said Cupps. "This is heavy engineering, and again I think that is the core competency, that is the differentiation Tesla has injected into the automotive equation," he said.
"This is a bunch of Silicon Valley, hungry, really smart guys, and they just tend to move faster, think bigger than the rest of the automotive industry."