T. Rowe Price positive about Tesla

The macroeconomic landscape is challenging at the moment, which is creating headwinds for companies to grow. This puts the impetus on trying to identify companies able to generate their own growth. We see a number of companies with competitive advantages exploiting some of the mega trends in tech – such as cloud computing and other disruptive technologies.

Tesla is one such name we are bullish on over the long term. We believe it is a revolutionary company addressing an enormous market with differentiated technology. The consumer response to the recently-unveiled Model 3 has been fantastic, and we do not see any reason why Tesla cannot scale up production to meet the demand for its product and grow substantially in the coming years.