UPDATE: Bank of America Initiates Coverage on Tesla Motors

Bank of America has published a report on Tesla Motors (NASDAQ: TSLA) initiating coverage on the electric vehicle developer.

In the report, Bank of America wrote, "Tesla's stock has outperformed since the IPO though it is heavily shorted. We expect meeting milestones to drive the stock until the Model S is out in 2H12. An important catalyst could be initial reviews expected this fall that are likely to be positive, in our view."

Bank of America rated Tesla a BUY with a price target of $34.00. Tesla closed Friday at $24.24.