Can Tesla Continue To Grow Amid Increasingly Crowded Competition?

Ford Motor Co (NYSE: F) recently announced plans to double its F-150 Lightning production as a result of strong demand, but there's still plenty of opportunity for Tesla Inc (NASDAQ: TSLA) in the increasingly crowded electric vehicle space, Bernstein analyst Tony Sacconaghi said Tuesday.

EVs represent about 3% of all vehicles sold today, but that's expected to increase to 80% by 2040, Sacconaghi said on CNBC. Tesla isn't going to supply the majority of the EV market when EVs are 80% of all vehicle sales.

"This market is going to grow a lot and there's room for many players," Sacconaghi said.

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Even if Tesla's share gets cut in half, there are still a lot of opportunities for Tesla to continue to grow, Sacconaghi said.

Investors should focus on the fact that the market is going to get 20 times larger going forward, he said.

Bernstein has a Sell rating and a $300 price target on Tesla shares.

TSLA Price Action: Tesla has traded as high as $900.40 and as low as $329.88 over a 52-week period.

The stock was down 0.08% at $705.76 at the time of publication.

Photo: courtesy of Tesla.