Baird Would Be 'Aggressive' Buyers of Tesla (TSLA) Following Over ~$5B in Initial Pre-Orders
Baird analyst Ben Kallo reiterated an Outperform rating and $300 price target on Tesla Motors (NASDAQ: TSLA) after the releaes of the Model III prototype and very strong pre-orders.
Kallo commented, "The Model III remains on schedule for late-2017 deliveries and the base vehicle features were better than expected. Additionally, the vehicle did not look too complex in comparison to the Model S/X, which should allow for an easier production ramp. Importantly, initial reservations in the first 24 hours were >100k vehicles, which greatly exceeded our expectations"
They estimate the average Model 3 will have a ~$45k ASP, which would make the initial reservations of ~115k vehicles be equal to ~$5.175B in revenue.
The analyst said they would be aggressive buyers at current levels.
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Shares of Tesla Motors closed at $229.77 yesterday.