Tesla's (TSLA) Price Cut Increases The Size Of The Addressable Market - Baird

January 3, 2019 8:09 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 his Outperform rating on shares of Tesla (NASDAQ: TSLA) along with his price target of $465 after the company announced Q4 deliveries that were slightly below consensus was well as a $2,000 price reduction. The analyst believes these two issues may
exacerbate concerns over moderating demand but he is not so sure and believes the price cut increases the size of the addressable market.

The analyst stated "we continue to believe demand concerns are overblown; we think the company has several levers to drive additional Model 3 sales, including shipping to international markets (expected in February), and introduction of leasing options/lower cost variants. We think deliveries are more than sufficient to support strong quarterly results and we remain buyers".

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 $303.40 yesterday.

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Robert W Baird, Tesla, Ben Kallo, Model 3