Deutsche Bank maintained a Buy rating on Tesla Motors (NASDAQ: TSLA) with a price target of $245. Analyst Rod Lache called Tesla's Q1 results stronger than expected with excellent execution. He also has increased confidence in the prospects for Tesla Energy.

"Overall, we viewed this as relatively impressive as 400bps of seq margin improvement was achieved despite the fact that FX represented a 300-400bps seq margin headwind. We’re maintaining our Buy rating as we believe that investors underestimate Tesla’s opportunities in vehicle electrification and stationary storage," said Lache.

"Q2 deliveries (10-11k) and margins (<25%) will be slightly lower than we expected. The margin trajectory is primarily related to FX, and should be corrected by Q3. We’d note that TSLA maintained their full year vehicle delivery guidance of 55,000. Based on mgmt’s commentary about the cadence of production, we believe that Model X could ramp-up more steeply than we previously thought (likely in the 5-10k unit range this year, vs. previous est’s of ~5k). We view this as a positive, as a higher contribution from Model X should firm up confidence in Tesla’s full year delivery guidance," continued the analyst.

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Shares of Tesla Motors closed at $230.43 yesterday.