Needham & Company Reiterates a 'Buy' on Tesla Motors (TSLA); Model S Ahead of Schedule Followed by Mercedes Deal

Needham & Company reiterates a 'Buy' on Tesla Motors (NASDAQ: TSLA) price target of $40.00.

Analyst, Michael Lew, said, "The key takeaways from the 1Q12 conference call are that Tesla Motors is executing to plan with the Model S to begin shipping this quarter, ahead of schedule. Reservations have exceeded 10,000 with Model X at about 1,000. In addition, the electric Mercedes Benz agreement is by far the company’s largest powertrain agreement and could be in excess of $300 million. In our view, Tesla Motors is well positioned to benefit from the electrification of luxury automotive transportation."

Needham lowers FY12 EPS estimate from (2.10) to (2.61), revs from $552.6 mln to $544.8 mln. FY13 EPS estimate cut from $0.27 to $0.24.

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 $30.06 yesterday.

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