Sifting Through Patent Applications Gives A Glimpse Of Tesla's Innovations

Ben Kallo of Baird reiterated an Outperform rating and $368 price target on Tesla Inc TSLA's stock after taking a deep-dive into the company's patent applications.

New Patents

Kallo uncovered 10 new patent applications that have been filed from January through March. Among the more notable applications includes a patent for hidden ultrasonic sonar assembly and an air filtration with a high-efficiency filter.

Other applications focus on vehicle safety and performance, which is notable since the company already boasts a strong safety track record and demonstrates management's commitment to further improve the safety and functionality of its products.

Kallo also suggested that Tesla will be active in designing new technology and patents for its gigafactory, solar offerings and other products.

Upcoming Catalysts

While the analyst will continue keeping a watchful eye on new patents, his bullish stance remains unchanged given six notable catalysts, including:

1. Production ramp of vehicles.
2. Gross margin expansion.
3. Expansion and updates of the gigafactory.
4. Production and upcoming launch of the Model 3 vehicle.
5. Ramp of Tesla Energy.
6. The potential for new product announcements.

Bottom line, Kallo also reaffirmed Tesla as the firm's "top idea for 2017" given the multiple catalysts ahead.

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