Heavyweight US broker Citi started coverage on electric car giant Tesla (NASDAQ:TSLA) with a 'neutral' stance and $357 target - a fair distance from the current price of around $329.
Much in the news recently, the Elon Musk founded firm is now delivering the first of its mass market Model 3 cars. These cost as little as $35,000.
Musk reckons production will ramp up quickly with 100 vehicles produced in August, a further 1,500 or more in September, and 20,000 per month by December.
Citi analyst Italy Michaeli explained that the rationale behind the broker's 'neutral' stance was that it was awaiting a stronger balance sheet and therefore a more advantageous entry point.
He reckons Tesla's cash balance will decline to $1.1bn at the end of 2017 from $4bn due to Model 3 production costs and operating losses.
He also reckons the California based firm will not generate positive free cash flow until 2019.