Wedbush Securities analyst Dan Ives said in a note that underlying drivers for the electric vehicle market are likely to push consumers toward Tesla's cheapest passenger car, at a time when many automakers are abandoning sedans in favor of SUVs.

Demand for Tesla's Model 3 midsize electric sedan "looks very strong into 2019 and beyond," said one analyst Wednesday.

Demand for the car is likely to reduce the risk Tesla will have to raise capital again in the near future, Ives said. Tesla's capital needs have been an ongoing issue for the company, and Tesla has had to return to the markets several times since it went public in 2010. Ives said he expects Tesla to spend $2.2 billion to $2.3 billion in 2019.

Deliveries to European customers appear to be on schedule, and Ives sees pent-up demand in that market. China also looks like a "major growth catalyst" on the heels of Tesla's recent price cuts in China, he said.

Tesla shares were up nearly 2 percent in premarket trading on Wednesday, pushing its market value to more than $50 billion. In the past 52 weeks, Tesla shares have traded as high as $387.46 and as low as $244.59. The stock is down 5 percent this year, having closed at $295.39 on Monday.