UPDATE: Oppenheimer Starts Tesla Motors (TSLA) at Outperform

Oppenheimer initiated coverage on Tesla Motors (NASDAQ: TSLA) with an Outperform rating and a price target of $340. Analyst Colin Rusch sees the company as "transformative" and pointed out its leading expertise in a number of areas.

"While the company’s automobile and stationary power products are readily definable within a well-documented market, the potential business models derived from those products are far more challenging for investors to wrap their heads around," said Rusch.

On concerns about product delays the analyst said, "TSLA has developed a strong reputation for world-class products. We believe bulls are more concerned with TSLA getting products right than on time, and we expect high-quality products to carry the stock forward."

Rusch added, "TSLA announced that it would begin shipping Tesla Energy products in 4Q:15. In considering the potential for energy storage, we see the possibility to replace over half the 600GW diesel-generation market and reach 5%-10% (or 250GW 500GW) penetration of the global 5.6TW grid ... With the Model X launch firmly scheduled, TSLA Energy shipments set to begin in 4Q:15, a successful soft launch of its autonomous driving software, and lower guidance for 2015, we believe investors will look at the reception of Model X's highly anticipated "secret" features as the next catalyst."

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 $241.93 yesterday.

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