Baird Maintains Bullish Stance on Tesla Motors (TSLA) Despite Q3 Hiccups
Baird analyst Ben Kallo reiterated an Outperform rating and $275 price target on Tesla Motors (NASDAQ: TSLA) following Q3 results, saying the long-term outlook overshadows the quarterly hiccups.
Kallo commented, "TSLA beat estimates, was in line with delivery targets, but missed production targets substantially as it upgraded its final assembly line during the quarter. Overshadowing the messy quarter was positive commentary on demand, production targets in 2014 and beyond, and potential margin expansion aided by increased efficiency as well as better margin on the dual-motor Model S."
The analyst notes Tesla delayed Model X deliveries until Q3, but our increased estimates for Model S deliveries offset lower revenue from Model X.
The company expects production at gigafactory in 2016, which is ahead of schedule.
The firm lowered FY 2014 EPS from $0.79 to $0.40 and sets FY 2015 EPS at $2.36.
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Shares of Tesla Motors closed at $230.97 yesterday.