Tesla (TSLA): SolarCity Vision Becoming Clearer - Baird

November 2, 2016 7:36 AM EDT
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Price: $183.50 -1.77%

Rating Summary:
    16 Buy, 14 Hold, 9 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 26 | New: 28
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Baird analyst, Ben Kallo, reiterated his Outperform rating on shares of Tesla Motors (NASDAQ: TSLA) after reviewing more details on the Solar City transaction.

Shareholders are likely to approve the merger, and TSLA should benefit from the acquisition through cross-selling opportunities, lower customer acquisition costs, and SCTY's large installation network for solar PV systems, solar roofs, and TSLA's Powerwall.

Importantly, management indicated SCTY will add >$500M in cash to the balance sheet over three years, and continues to expect $150M in cost synergies in year 1.

No change to the price target of $338.

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 $190.79 yesterday.

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Robert W Baird, Tesla, Definitive Agreement, Ben Kallo

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