Deutsche Bank analyst Rod Lache on Monday wrote that Tesla (TSLA) will complete 2017 with $1.8 billion in cash and a substantially more comfortable liquidity buffer.
Furthermore, Tesla will sell almost as many cars as both BMW and Mercedes by 2030, he added.
"We are adjusting our [discounted cash flow] framework to reflect continued rapid growth through 2030, at which time we assume volumes level off at ~2MM units per year (for reference, BMW group sells 2.26MM per year and Mercedes achieves 2.27MM per year). At that point we assume a terminal growth rate of 3.0% (in 2030 and 7.5% in 2021), and terminal margin of 9.5%," Lache wrote in a note.
The firm increased its price target on Tesla to $240 from $220.