Stifel Affirms Tesla (TSLA) at 'Buy'; CFO Retirement, Energy Storage Key Points at Annual Meeting

Stifel is out with commentary on Tesla's (Nasdaq: TSLA) 2015 Annual Shareholders Meeting. The firm rates Tesla at Buy with a price target of $400.

Analyst James Albertine summarized: Broadly speaking, commentary at the shareholders meeting was about as we expected, reinforcing management's optimistic views on renewable-powered, sustainable transportation and stationary storage initiatives.

The biggest surprise, in our view, was the announced retirement of CFO Deepak Ahuja, who has been integral in helping analysts and investors navigate the complicated and sometimes frustratingly opaque financial situation as TSLA works through its early stage growing pains. In terms of cash burn, we believe commentary reinforces our view that elevated spending driving short-term profitability pressures are warranted to support future growth.

We continue to model a 4Q15 launch for the Model X, which seems aligned with management commentary that deliveries are 3-4 months out.

In terms of energy storage, we have noticed a disconnect between management commentary and media coverage, particularly as it relates to residential Powerwall applications. That said, we are comforted to hear TSLA intend its Powerpack stationary storage application for utilities will represent close to 80% of the storage business over time, as supply/demand dynamics are likely less complicated among commercial customers relative to residential (need to sell fewer units in theory to achieve target profitability, we think). All told, we believe there will some, though minimal, new positive takeaways from yesterday's discussion.

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