Baird Cautious into Tesla (TSLA) Q2, But Remains LT Buyers

Baird analyst Ben Kallo reiterated an Outperform rating and $338 price target on Tesla Motors (NASDAQ: TSLA) although they are cautious into the quarter.

Kallo commented, "We are cautious heading into the quarter as significant positive information has been released over the past few weeks, and we believe margins could disappoint given the higher mix of Model X vehicles, and due to this being the first quarter of the Model S refresh (although the refresh should allow for higher margins over time). We are not expecting any significant news announcements, and would be buyers on weakness as TSLA continues to show strong technological innovation."

The firm's estimates are below consensus after adjusting for Q2 deliveries of 14,370 vehicles. They now forecast revenue of $1,531.8M, non-GAAP net income of ($82.8M), and non-GAAP EPS of ($0.60), vs. consensus of $1,637.9M/ ($72.2M)/($0.54), respectively. For Q3 and Q4, they now expect deliveries of 21k and 29k vehicles, respectively.

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Shares of Tesla Motors closed at $234.79 yesterday.