Baird Upgrades Tesla Motors (TSLA) to Outperform

March 14, 2016 6:28 AM EDT
Get Alerts TSLA Hot Sheet
Price: $191.98 -2.83%

Rating Summary:
    30 Buy, 20 Hold, 9 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 15 | Down: 9 | New: 13
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Baird upgraded Tesla Motors (NASDAQ: TSLA) from Neutral to Outperform with a price target of $300.00 (from $230.00).

Analyst Ben Kallo commented, "We believe investor skepticism has significantly increased since we downgraded TSLA on Oct. 6, and although we were concerned about the rate of Model X deliveries, recent data points show production is accelerating, which should drive deliveries and margin expansion throughout 2016. Additionally, we believe TSLA is ahead of expectations on reducing battery costs, and continues to have a significant lead on competing EVs. We would be buyers at current levels."

Kallo highlighted:

  • Model X concerns are similar to the Model S introduction, although TSLA is a more mature company.
  • We recently visited the factory and viewed dozens of Model Xs in production.
  • We believe no capital raise will be needed in the next few quarters, and availability for bridge financing remains robust.
  • Battery cost reductions are likely ahead of most estimates.
  • High short interest sets up stock for potential catalysts of Model III introduction and Q1 deliveries announcement.

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 $207.50 yesterday.

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Robert W Baird, Tesla, Ben Kallo