Strong Dollar Benefits Tesla (TSLA) - Analyst

Global Equities analyst Trip Chowdhry weighed in on Tesla Motors (NASDAQ: TSLA) in a recent note to clients, saying the strong U.S. dollar is a benefit for the company.

Chowdhry notes that 70% of Tesla's component suppliers, by cost, are international - and these components go into 100% of the cars. Meanwhile, 30% of Tesla's component suppliers, by cost, are domestic. Therefore the strong dollar reduces the cost of 70% of the components that go into Tesla Model S.

Below is the list of major component suppliers to Tesla:

Further, the analyst notes 50% of Tesla sales are Domestic and 50% of sales are International. He said international customer are performance sensitive (0 - 60 mph, Instant Torque etc.) versus cost sensitive. He said the exchange impact pass through to price is easier.

"The net impact of Stronger Dollar on Tesla's business probably makes TSLA one of the best Technology stock to own in the Strong Dollar environment," he said.

The analyst reiterated an Overweight rating price target of $385 on Tesla.

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

Shares of Tesla Motors closed at $203.60 yesterday.

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