Hidden Insights in Tesla's (TSLA) 10K - Baird

Reading a lengthy 10K is often less fun than watching paint dry but analysts have to do it. Today we're giving a hat tip to Baird analyst, Ben Kallo for alerting us to some key insights that were in Tesla Motors's (NASDAQ: TSLA) 10K that you'll likely hear about on the news over the next few days.

1) New vehicles are on the way. The company plans to introduce products to address a “broader
cross-section of the consumer vehicle market” and also aims to introduce commercial electric vehicles. TSLA previously indicated it plans to grow its consumer segment with the creation of a compact SUV (Model Y) and pickup truck, and build out its commercial segment with a heavy-duty truck and “high passenger-density urban transport” vehicle.

2) Spending will increase to improve the sales and charging infrastructure. TSLA had 265 store locations, up 27% from 208 in 2015, and 790 supercharger stations, up 35% from 584 in 2015. Additionally, TSLA’s destination charging program, which involves partnering with hotels and shopping centers to offer additional charging options, grew to 4,140 locations worldwide, up 130% from 1,800 in 2015. The analyst notes that "bears have argued TSLA does not have charging infrastructure to support mass Model 3 production, but TSLA indicated it is increasing the size of the supercharger network at an accelerated rate".

3) China is a growing end market. In 2016, the majority of TSLA’s revenue came from the US (~60%), followed by China (15%), Norway (~5%) and all other countries (20%).

No change to the Outperform rating or the price target of $368.

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 $250.02 yesterday.

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