Dougherty & Co Says Tesla Motors (TSLA) Stock Offering is a Positive

Dougherty & Co reiterated their Buy rating and $40 price target on Tesla Motors (NASDAQ: TSLA) following yesterday's secondary offering, saying the funds signify a sooner start to the Model X design.

Commenting on the news, analyst Andrea James noted:

"The capital raise has been well-communicated, so it comes as no surprise. However, the timing is ahead of expectations. The capital raised will primarily be used to accelerate Model X development. The fact that timing is ahead of schedule speaks to Model S progress. Put simply, Tesla has early stage product
development employees who are free to work on Tesla's next product now that early stage development of the Model S is complete.

Also surprising to us is the private placement, with the CEO investing an incremental $40MM in Tesla, which is a positive development.

Finally, we note that no holders are selling concurrently with the offering, which we think is encouraging."

For more ratings news on Tesla Motors click here and for the rating history of Tesla Motors click here.

Shares of Tesla Motors closed at $28.98 yesterday.

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