Buy Tesla (TSLA) on Any Weakness; NJ is Small Part of the Pie - Baird

Baird maintains its Outperform rating and $245 price target on Tesla Motors (Nasdaq: TSLA) following news that New Jersey snubbed the company's direct-sales plans in the state.

Analyst Ben Kallo sees any pullback as a buying opportunity, saying, The NJ decision will affect two stores out of 50-60 total retail locations, and TSLA still has several options for challenging the New Jersey Motor Vehicle Commission’s (NJMVC) decision ... Importantly, we do not believe the NJMVC’s decision will significantly affect demand for TSLA’s vehicles, as NJ customers can visit stores in surrounding states or purchase the Model S and Model X online. Tesla continues to open stores in other states and its total footprint should grow dramatically by the end of 2014.

While headline risk could affect Tesla in the near-term, the company's rapid expansion in China, Europe, and other U.S. states should offset volatility from individual state rulings, Kallo said.

China is a large market and Model S demand could accelerate in the market throughout the rest of the year.

For an analyst ratings summary and ratings history on Tesla Motors, click here. For more ratings news on the company, click here.

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