NEW YORK (TheStreet) -- Tesla Motors (TSLA) is seeing sustainable growth in China, according to a note written by Goldman Sachs analyst Patrick Archambaul on Wednesday.
Archambaul calculated close to 4,000 reservations and down payments in the country for the company's Model S sedan as of the middle of September.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Archambaul also noted that any growth for the electric vehicle maker in China will be heavily influenced by the company's ability to secure electric vehicle subsidies from the Chinese government for its cars.
"With distribution likely to be the real pinch point shorter term, we think the strategy of leveraging local outsourced domestic service location makes sense for expanding distribution and service, as it's very scalable and cuts down on\ upfront investments for things like body work and painting. From all indications demand appears very strong, and Tesla has ambitious targets. Industry officials we spoke to suggested that Tesla reservations had achieved 4,000 in China as of mid Sept," said Archambaul.
Tesla shares are down 0.8% to $248.40 in early market trading today.
TheStreet takes a deeper look at Tesla's future here.
TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: