Tesla Motors (TSLA) New Lease Program for Small and Midsized Businesses a Positive, Baird Says
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Baird analyst Ben Kallo reiterated an Outperform rating and $275 price target on Tesla Motors (NASDAQ: TSLA) on news of a leasing program for small and mid-sized businesses.
Kallo's initial reaction is positive: "TSLA’s new financing product should drive demand for TSLA’s Model S and Model X vehicles while allowing the company to make a return on its invested capital. Additionally, the option of introducing asset-backed securities in the future could provide TSLA with another source of low cost capital. Securitization would also allow TSLA to receive upfront cash for its leases which could be deployed for the construction of the Gigafactory or for the production ramp of the Gen III vehicle."
Shares of Tesla Motors closed at $207.52 yesterday.
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