Tesla (TSLA) Thoughts After Factory Tour - Baird

December 11, 2019 6:21 AM EST
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Price: $589.72 +3.15%

Rating Summary:
    21 Buy, 21 Hold, 11 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 4 | New: 24
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Baird analyst Ben Kallo reiterated an Outperform rating and $355.00 price target on Tesla (NASDAQ: TSLA) on the belief that 2020 offers several drivers of earnings growth including: ramp of Model 3 production in Fremont and China, introduction of the Model Y (volume production expected mid-2020), and FCA credits (starting in earnest in Q1:20). The analyst also toured the Fremont factory offering 4 takeaways:

  • The Shanghai factory is a significant driver, but only one step of process in global growth.
  • Model Y volume production (~1k vehicles/week) on track for mid-2020.
  • The Cybertruck unveiling generated some headlines, but the primary focuses should be on: Model 3, Model Y, cash generation, and Tesla Energy.
  • TSLA recently announced it will begin charging $10/month for“premium connectivity” features, which should provide a margin lift and generate recurring cash flow.

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $350.29 yesterday.

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Robert W Baird, Tesla, Earnings, Ben Kallo, Model 3