Tesla is going to be the top performing big name technology stock in the next five years, one noted analyst has told CNBC.
Gene Munster, a former analyst at Piper Jaffray and now venture capitalist at Loup Ventures, was speaking afterg Tesla's disappointing earnings on Wednesday.
The electric car-maker reported a larger-than-expected loss per share of $2.92. It also said that it expects to achieve a production rate of 5,000 Model 3 cars per week in the first quarter of 2018, after previously saying that this would be possible by the end of this year. The Model 3 is seen as a key driver of Tesla's future growth.
But the disappointing quarter has not deterred Munster from the future growth story.
"My outlook that this is going to be the best performing large cap tech stock in the next five years hasn't changed. The news tonight and the push back is a disappointment and I think that I'm in the camp betting that he's done this in the past and he will ramp (production of Model 3)," Munster told CNBC in a television interview.
"And I would just caution investor too. Again I'm fully behind this story, none of that has changed, but we are going to see other disappointments and it's just a bigger opportunity and he will capitalize on that."
Chief Executive Elon Musk said the production delay of the Model 3 was due to a supplier who had "really dropped the ball" at the Gigafactory. One of the issues is with a battery module used in the car.