Tesla shares could keep rising beyond recent all-time highs, despite long-term concerns about the company, according to Pacific Crest analyst Brad Erickson.
Tesla is a "near-term phenomenon," Erickson said Tuesday on CNBC's "Power Lunch," and investors seem to be far more concerned with the future than with fundamentals for several months or more.
Tesla will hold its annual shareholder meeting on Tuesday, and investors will be looking for an update on the Model 3 sedan production timeline, which is expected to begin in July.
Erickson said in a note sent Tuesday that Tesla could rise as high as $439, even though he maintains a hold rating on the stock and says the company's fundamentals give reason for longer-term skepticism.
Tesla hit another all-time intraday high above $359 on Tuesday.
"Longer term we have some major reservations on the stock, particularly on demand, as well as profitability," he told "Power Lunch."
But investors may simply ignore fundamentals and profitability through 2018.
Investors he has spoken to say they do not care about recent signs of softening demand for Tesla's high-end S and X models because they are mostly fixated on the upcoming Model 3.
"If and when sentiment decides to actually shift more on this, bulls won't have a defense," Erickson told "Power Lunch." "If demand is plateauing, that deserves a significantly lower multiple; and if the profitability isn't there for the Model 3, that is going to be penal. And so, that is too big of a risk, in our view."
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