Baird analyst Ben Kallo reiterated an Outperform rating and $275 price target on Tesla Motors (NASDAQ: TSLA) following Q1 results, saying the company is set up nicely for a strong 2nd-half performance.

Kallo commented, "TSLA's quarter was good beating Street estimates, but the stock will likely be under pressure against a market that dissects high multiple stocks. With that said, our long-term thesis remains intact as TSLA progresses on all fronts including Model S sales, infrastructure build-out, and new model developments. We would be aggressive buyers of the stock."

On the quarter, the analyst noted TSLA beat on the top line and bottom line and beat its 6400 delivery and production targets slightly On guidance, while better than expected it may not be as good as some wanted. "TSLA guided to 7500 Model S deliveries in Q2 (vs. our estimate 6500) and production of 8500-9000 cars which we believe is a solid ramp setting up solid financials in 2H:14," he notes.

New model (X and Gen III) and infrastructure development will require investment - reducing overall estimates due to spend, the analyst notes. "TSLA guided R&D to increase 30% q/q and SG&A 15%, which will fund new models and infrastructure build-out. We are increasing our 2014-2016 operating expenses," he said.

The firm lowered FY 2014 EPS from $1.56 to $1.01 and FY 2015 EPS from $3.53 to $2.36.

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Shares of Tesla Motors closed at $201.35 yesterday.