What's The Biggest Catalyst For Tesla? Here's What Daniel Galves Thinks

• The share price of Tesla Motors Inc TSLA has appreciated 4.38 percent the past one month, while declining 1.87 percent year to date.
• Dan Galves of Credit Suisse has maintained an Outperform rating on the company, with a price target of $325.
• Galves believes that the company’s Q4 volume guidance is achievable, as well as EPS of $4 in 2016. At present, the Street appears focused on near term issues affecting Tesla Motors.

Analyst Dan Galves expects the Model X production ramp and Q4 volume issues “to be addressed in a positive way by early Jan when Tesla discloses Q4 vol's, allowing the Street to re-focus on the long-term story.”

Investors have been skeptical about the company being able to achieve the low end of Q4 volume guidance of 17,000 units, given that it represents sequential growth of 46 percent. However, given the 15,000 orders in Q3, along with incremental sales of 1,000 units each in Denmark and the UK, Galves believes that the Q4 guidance is achievable.

In addition, production ramp of Model X appears imminent, given that early buyers of Model X “are beginning to be contacted about December delivery and Monday's release (November 30) of full Model X specs / pricing indicates that production ramp is in sight.”

For 2016, Galves expects the company to deliver better than expected free cash flow and earnings. This is expected to the “biggest future catalyst” for Tesla Motors.